Trump administration to review stalled Nippon-US Steel deal

Apr 8

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Craig Nigrelli Anchor/Reporter

By Craig Nigrelli (Anchor/Reporter), Kaleb Gillespie (Video Editor), Shea Taylor (Producer)

President Donald Trump ordered a new review of the stalled deal between Japan’s Nippon Steel and U.S. Steel. He wants the Committee on Foreign Investment to conduct an examination in the U.S.
The Biden administration halted the $14 billion deal, entangling it in federal appeals court.
Trump said that he wants the new review completed within the next 45 days.

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President Donald Trump ordered a U.S. national security panel on Monday, April 7, to review the stalled deal between Japan’s Nippon Steel and U.S. Steel.

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“I direct the Committee on Foreign Investment in the United States … to conduct a review of the acquisition of U.S. Steel by (Nippon Steel) to assist me in determining whether further action in this matter may be appropriate,” Trump said in a memo.

The agreement would lead to Nippon Steel purchasing U.S. Steel for $14 billion.

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What are Trump’s objectives?

Trump has urged Nippon Steel and U.S. Steel to revise their deal so that the Japanese company would invest in U.S. Steel without completely owning the American firm.

The Committee on Foreign Investment in the U.S. would conduct the review.

The Wall Street Journal reported that such a review would give the Trump administration the flexibility to broker an agreement and might lead to a completed deal.

Trump said he wants the new review completed within 45 days.

What is the history of the merger?

The previous deal, struck by the two companies in 2023, would shift the U.S. steelmaker to Japan.

The United Steelworkers opposed the deal while shareholders approved the sale.

The Union said the future of steelmaking in the Mon Valley of Pennsylvania is at stake.

However, U.S. Steel warned that if the deal does not go through, it could transfer its headquarters out of Pittsburgh and take thousands of jobs with it.

What is the response to this new development?

The United Steelworkers union president told the WSJ that regardless of how much scrutiny the proposed deal receives, their position has not changed, and such a deal remains a threat to national and economic security.

Nippon Steel commended Trump for his leadership and said it validates the administration’s challenge of Biden’s order.

Tags: Donald Trump, merger, Nippon Steel, US Steel

[CRAIG NIGRELLI]

PRESIDENT TRUMP APPEARS TO HAVE BREATHED NEW LIFE INTO THE STALLED NIPPON STEEL AND U.S. STEEL DEAL. IT WOULD SEE NIPPON ACQUIRE U.S. STEEL, BASED IN PITTSBURGH, FOR $14 BILLION. THE PRESIDENT HAS NOW ORDERED A NEW NATIONAL SECURITY REVIEW OF THE PLAN.
THE MULTI-BILLION DOLLAR TRANSACTION IS CURRENTLY TIED UP IN FEDERAL APPEALS COURT. NIPPON AND U.S. STEEL ARE CHALLENGING A RULING BY THE BIDEN ADMINISTRATION, WHICH BLOCKED THE AGREEMENT, CITING NATIONAL SECURITY CONCERNS.
PRESIDENT TRUMP HAS ENCOURAGED NIPPON STEEL AND U.S. STEEL TO RESTRUCTURE THEIR DEAL SO THAT THE JAPANESE COMPANY WOULD INVEST IN U.S. STEEL WITHOUT FULLY OWNING THE AMERICAN COMPANY.
THE COMMITTEE ON FOREIGN INVESTMENT IN THE U.S. WOULD CONDUCT THE REVIEW. THE WALL STREET JOURNAL REPORTS SUCH A REVIEW WOULD GIVE THE TRUMP ADMINISTRATION FLEXIBILITY TO BROKER AN AGREEMENT AND MIGHT PAVE THE WAY FOR A DEAL TO BE COMPLETED.
THE PREVIOUS DEAL, STRUCK BY THE TWO COMPANIES IN 2023 WOULD SHIFT THE U.S. STEELMAKER TO JAPAN. THE UNITED STEELWORKERS OPPOSED THE DEAL WHILE SHAREHOLDERS APPROVED THE SALE. THE UNION HAS SAID THE FUTURE OF STEELMAKING IN THE MON VALLEY OF PENNSYLVANIA IS AT STAKE, WHILE U.S STEEL HAS WARNED IF HE DEAL DOES **NOT** GO THROUGH, IT COULD TRANSFER ITS HEADQUARTERS OUT OF PITTSBURGH AND TAKE WITH IT, THOUSANDS OF JOBS.
THE PRESIDENT OF STEELWORKERS UNION, DAVE MCCALL, TOLD THE JOURNAL, “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.”
NIPPON STEEL, HOWEVER, APPLAUDED THE NEW DEVELOPMENT, SAYING IN A STATEMENT, “ WE APPRECIATE AND COMMEND PRESIDENT DONALD TRUMP’S LEADERSHIP. HIS ACTION TODAY VALIDATES OUR BOARD’S BOLD DECISION TO CHALLENGE PRESIDENT BIDEN’S UNLAWFUL ORDER .”
THE PRESIDENT WANTS THE RECOMMENDATION FROM THE COMMITTEE ON FOREIGN INVESTMENT IN THE U.S. IN 45 DAYS. FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS APP