President Donald Trump ordered the Committee on Foreign Investment in the United States to reassess Japan’s Nippon Steel’s $14.9 billion offer to buy US Steel (USS) last year. It was blocked by former President Joe Biden in January.
The news excited investors. USS stock jumped over 16%, closing at $44.49.
The committee has 45 days to assess whether the proposed safeguards from USS and Nippon are enough to “mitigate any national security risks” the acquisition may pose.
USS is a key American steel producer, and foreign control over it has raised concerns from several lawmakers and US Steelworkers fearing it may lead to job losses.
Despite previously opposing the deal, Trump seemed more open to a compromise after meeting with Japan’s prime minister in February. He mentioned that Nippon would be a bigger investor in USS and wouldn’t buy the iconic Pennsylvania steelmaker entirely.