Trump's Green Light: Revisiting Nippon Steel's Bid for U.S. Steel

President Donald Trump has directed a national security panel to reevaluate Nippon Steel's bid for U.S. Steel. This comes after Biden blocked the deal on security grounds, prompting lawsuits. Shares soared with hopes of approval, while diplomatic discussions continue, highlighting economic and political stakes.

On Monday, President Donald Trump instructed a U.S. national security panel to reevaluate Nippon Steel's bid to acquire U.S. Steel, sparking speculation that the merger could finally receive approval. Trump's directive asks the Committee on Foreign Investment in the United States (CFIUS) to reassess the acquisition's implications.

The news sent shares of U.S. Steel soaring by nearly 14%, indicating that investors perceive a higher likelihood of the deal moving forward. Nippon Steel's stock also rose significantly, climbing almost 10% in Tuesday's Tokyo morning trading session, further reflecting market optimism.

Despite previous opposition from the Biden administration, which cited national security concerns, Nippon Steel remains optimistic. "A fact-based review of our partnership with U.S. Steel will demonstrate its benefits for American economic and national security," the company stated. Meanwhile, Japan's industry minister emphasized ongoing efforts to facilitate communication between the parties.

(With inputs from agencies.)