President Trump threw the $14 billion Nippon Steel acquisition back into play. The administration has ordered a fresh CFIUS reviewthis time from scratchbreathing new life into a deal previously blocked by Biden on national security grounds. The White House says the review will evaluate whether the proposed structure can be reshaped to resolve lingering concerns, potentially opening a path for approval. Investors welcomed the move, pushing U.S. Steel (NYSE:X) stock move up by 13.3% at 1.58pm today.
The original dealstruck in late 2023would hand over the iconic American steelmaker to a much larger Japanese rival eager to crack into the U.S. market. But political resistance from both parties and labor unions has stalled it for months. Trump, now in office, has signaled a softer stance. Rather than killing the deal outright, he's open to tweakspossibly allowing a major Japanese equity stake without full control. The goal? Balance foreign investment with national interests, all while keeping U.S. steel competitive.
Nippon Steel is still pushing for a full acquisition, saying a joint venture just won't cut it if they're expected to invest heavily and deploy advanced technology. But the road ahead remains bumpy. The United Steelworkers union is holding firm against any foreign takeover, warning of job losses and long-term strategic risks. Still, with U.S. steel prices strong and a de novo review now in motion, markets are betting this saga might finally turn a cornerwith the right political cover.
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