President Donald Trump ordered a review of the potential sale of US Steel Corp to Nippon Steel Corp, opening the door to amend a decision by his predecessor, Joe Biden, to block the transaction.
In an order published on Monday, Trump directed the panel “to conduct a review of the acquisition of US Steel by the purchasers to assist me in determining whether further action in this matter may be appropriate.” The order said the panel should submit a report within 45 days.
US Steel shares surged as much as 15% after the announcement, before trimming gains to trade 6.9% higher as of 10.29am in New York.
The order comes three months after then-president Joe Biden decided to block the deal, claiming national security concerns, after one of the most politicised fights over the fate of a foreign acquisition of an American company. Advocates for the deal have long argued that Nippon Steel’s purchase would help revitalise the once-struggling US Steel through significant repairs to ageing assets, investment in growth to boost capacity and the sharing of steelmaking technology. The deal, though, faced incredible resistance from the powerful United Steelworkers union that operates US Steel’s integrated mills across the American Rust Belt.
Trump has long opposed the sale, and has ruled out a majority stake for Nippon Steel. But he has also said he might allow the Japanese firm to own a minority share of the iconic American steelmaker. US Commerce Secretary Howard Lutnick emerged as a key player in determining the future of US Steel, two weeks ago holding back-to-back meetings with Nippon Steel and activist investor Ancora Holdings Group.
Source:The Edge
