White House revisits $14.1 billion acquisition previously blocked over national security concerns
Shares of U.S. Steel (NYSE: X) surged more than 14% on Monday following President Donald Trump’s directive to revisit the company’s proposed $14.1 billion acquisition by Japan’s Nippon Steel. The order calls for the Committee on Foreign Investment in the U.S. (CFIUS) to conduct a 45-day review to assess whether the deal still poses national security risks.
The acquisition was originally blocked by former President Joe Biden in January, citing concerns that foreign ownership of the iconic American steelmaker could threaten U.S. national interests. Biden’s order at the time left the door open for future executive action—a provision Trump now appears to be acting on.
In his statement, Trump instructed CFIUS to determine whether measures proposed by the companies involved would be sufficient to mitigate any national security risks identified by the committee. The companies, which have since filed lawsuits against the U.S. government challenging the blockage, are expected to cooperate with the review process.
Trump’s move to reevaluate the deal has sparked renewed investor optimism, with traders betting on a potential green light for the acquisition. The sharp rise in U.S. Steel’s stock reflects the market’s perception that the review could lead to a reversal of the earlier decision—or at least open the door to a compromise.
The CFIUS review could reshape the future of the U.S. steel industry, reigniting debates over foreign ownership of critical infrastructure and its intersection with national security. A recommendation from the committee is expected within the next 45 days.
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