President Trump orders review into Nippon Steel’s bid for US Steel

US President Donald Trump ordered a review into the potential purchase of US Steel by Japan’s Nippon Steel on Monday.

"I direct the Committee on Foreign Investment in the United States ... to conduct a review of the acquisition of US Steel by [Nippon Steel] to assist me in determining whether further action in this matter may be appropriate," said a memo from the president. The security panel should submit a report within 45 days.

Trump previously opposed the purchase of the US firm by Nippon Steel, a $15 billion (€13.7bn) deal blocked by his predecessor Joe Biden in January.

Biden said that there was “credible evidence” that Nippon may threaten US national security after the Committee on Foreign Investment failed to reach a decision on the matter before a December deadline.

“Without domestic steel production and domestic steel workers, our nation is less strong and less secure," Biden said.

In the wake of the White House’s ruling, the two firms subsequently launched two US lawsuits—stressing that the ruling was irrational because of Japan’s status as an American ally.

"Nippon Steel and US Steel have engaged in good faith with all parties to underscore how the transaction will enhance, not threaten, United States national security," the companies said in a statement in January.

Biden was accused of blocking the deal to support a political agenda, namely appealing to protectionist voices across the American Rust Belt.

The takeover notably faced significant resistance from the United Steelworkers union.

This is despite the fact that Nippon Steel had promised to invest $2.7bn (€2.6bn) in US Steel's ageing blast furnace operations in Indiana and Pennsylvania, arguing that it could help the US compete with Chinese competitors.

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