President Donald Trump ordered a federal review of Japan-based Nippon Steel's acquisition bid of U.S. Steel on Monday, raising the notion that the deal could be revived.
The presidential action comes after former President Joe Biden blocked the $14.9 billion deal in January, citing national security concerns.
The new review, to be carried out by the Committee on Foreign Investment in the United States, is meant to assist Trump in "determining whether further action in this matter may be appropriate." The committee must submit recommendations to the president within 45 days.
Nippon said in a statement it was "pleased" with the announcement of the review.
"We have been confident from the outset that an objective, fact-based review of our proposed partnership with U.S. Steel will show that it strengthens American economic and national security so that U.S. Steel remains a proud American company with products that are mined, melted and made in the United States by American workers," the company said in an emailed statement.
U.S. Steel commended Trump on the move to reignite the deal, saying in a statement the acquisition will “preserve existing jobs, create new jobs, enhance national security and secure a bright future for American manufacturing.”
“Today’s decision by President Trump is pivotal as we work to deliver on new and historic levels of investment in American steelmaking,” the company said.
Nippon's attempted acquisition of U.S. Steel has been controversial since the deal was first proposed in December 2023. Both Biden and Trump have previously opposed the deal, though Trump in February said he supported the idea that Nippon may instead invest in U.S. Steel, rather than acquire the company.
"They’re doing it as an investment, no longer a purchase,” Trump said at a Feb. 7 White House press conference with Japanese Prime Minister Shigeru Ishiba. “I didn’t want it purchased, but investment I love.”
Talk of the deal made headlines again late last month after Nippon offered to invest billions of dollars in U.S. Steel's aging production infrastructure as a way to preserve the acquisition, Semafor reported. The company initially offered to invest $2 billion, but it was ready to increase the offer as high as $7 billion, according to the report.
United Steelworkers, which represents U.S. Steel union employees, has long opposed the deal, saying it posed national security and economic risks to the country by ceding control of the company to a foreign firm.
“Regardless of how much scrutiny the proposed USS-Nippon deal receives, it does not alter the urgent threat it poses to our national and economic security, the long-term future of the steel industry or our members’ jobs,” USW International President David McCall said in an emailed statement.
