Trump orders new review of Nippon Steel's bid to buy US Steel

Under the order, the Committee on Foreign Investment in the United States, or CFIUS, will review whether measures proposed by the Japanese steelmaker to mitigate the national security risks of the proposed acquisition of the US company are sufficient.

Trump gave CFIUS 45 days to submit a recommendation on the matter.

There is a possibility that Nippon Steel's stalled plan to acquire US Steel will move forward, pundits said.

In a presidential memorandum signed on Monday, Trump said he has ordered the committee "to assist me in determining whether further action in this matter may be appropriate."

Nippon Steel said in a statement that it expects CFIUS to complete its review at an early date so that it can begin its planned investment.

The United Steelworkers labor union and others have expressed opposition to the planned acquisition.

In January, Biden ordered the deal to be scrapped, citing national security concerns.

CFIUS, which was also in charge of the review at the time, failed to reach a conclusion by the deadline and left the decision to Biden.

Trump has also signaled his opposition to the takeover plan since taking office.

At a press conference in February, the president said that Nippon Steel would make an investment in US Steel, rather than own it, expressing his intention not to approve a full takeover.

Meanwhile, Nippon Steel has proposed to the US government measures to reduce national security risks, such as additional investment and making the majority of US Steel's board of directors US citizens after the proposed acquisition.

Even after Biden ordered the halt to Nippon Steel's planned acquisition, the Japanese company has maintained its policy of aiming for a full acquisition, stepping up efforts to seek support from the Trump administration.

In January this year, Nippon Steel and US Steel filed a lawsuit against the US government and others, seeking to invalidate the order halting Nippon Steel's plan to acquire US Steel.

[Copyright The Jiji Press, Ltd.]

Photo by Reuters