US Steel hits 52-week high after Trump orders new security review of
Nippon Steel bid
[April 09, 2025] By
MICHELLE CHAPMAN
Shares of U.S. Steel are hitting a 52-week high after President Donald
Trump ordered a new national security review of Nippon Steel's proposed
bid to buy U.S. Steel for nearly $15 billion.
President Joe Biden blocked the deal just before leaving office and
Trump had vowed to do the same in previous months. Late Monday Trump
ordered the Committee on Foreign Investment in the United States to
review the transaction “to assist me in determining whether further
action in this matter may be appropriate.”
Shares soared 16% Monday and rose modestly Tuesday.
The confidential review will look for potential national security risks
from the proposed deal and the U.S. will give Nippon and U.S. Steel time
to respond to any concerns.
CFIUS will have 45 days to submit a recommendation to Trump detailing
whether any measures proposed by Nippon and U.S. Steel are sufficient to
mitigate identified risks.
Ancora Holdings Group, which has a minority stake in U.S. Steel, said
Tuesday that it won't stand in the way of Nippon's proposed bid for the
company. The asset manager also said that it wants U.S. Steel to delay
its annual shareholders meeting, which is scheduled for May 6, until
after June 18 in order to give shareholders time to learn the outcome of
the 45-day review by CFIUS.
“There is no legitimate reason for U.S. Steel to rush to hold its Annual
Meeting before the governmental review concludes,” Ancora said in a
statement.
Nippon Steel made a nearly $15 billion offer to buy U.S. Steel in 2023,
giving rise to a political issue in the 2024 presidential election as
the fate of the Pittsburgh steelmaker potentially carried with it the
swing state of Pennsylvania. Biden agreed with the United Steelworkers
in seeking to block the merger, while Trump as a candidate said he was
in outright opposition to the sale.
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A view of the United States Steel Mon Valley Works Clairton Plant,
in Clairton, Pennsylvania, October 13, 2024. (AP Photo/Ted Shaffrey,
File)
 CFIUS sent its long-awaited report
on national security concerns about the merger to Biden late last
year. But the government panel failed to reach a consensus as to
whether there were national security issues.
A month later Biden blocked the proposed transaction, affirming an
earlier vow to prevent the acquisition of Steeltown USA’s most
storied company.
Biden previously came out against the deal during the presidential
campaign — and was backed by the United Steelworkers, concerned over
whether the company would honor existing labor agreements or slash
jobs, as well as over the firm’s financial transparency.
Nippon and U.S. Steel countered by filing a federal lawsuit shortly
after, challenging Biden's decision to block the proposed
acquisition of the Pittsburgh company and claiming that the head of
the Steelworkers union and a rival steelmaker worked together to
scuttle the buyout.
In February Trump suggested that Nippon Steel would no longer buy
U.S. Steel as planned, but the Japanese company would instead invest
in the symbolically important American business.
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