Latest news with #CFIUS-led
Yomiuri Shimbun
24-05-2025
- Business
- Yomiuri Shimbun
Trump Supports Nippon Steel's Bid for US Steel, Shares Jump 21％
Reuters file photo Nippon Steel logo is displayed at the company's headquarters in Tokyo on April 1, 2024. WASHINGTON, May 23 (Reuters) – U.S. President Donald Trump on Friday expressed support for Nippon Steel's 5401.T $14.9 billion bid for U.S. Steel X.N, saying their 'planned partnership' would create jobs and help the American economy. Shares of U.S. Steel soared 21% as investors interpreted Trump's post on Truth Social to mean Nippon Steel had received his approval for its long-planned takeover, the last major hurdle for the deal. This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy, Trump said in a post on Truth Social. This week, Reuters reported that Nippon Steel has said if the merger is approved, it would invest $14 billion into U.S. Steel's operations, including up to $4 billion in a new steel mill. Trump added that the bulk of that investment would occur in the next 14 months and said he would hold a rally at U.S. Steel in Pittsburgh next Friday. Nippon Steel said it applauded Trump's decision to approve the 'partnership.' The White House did not immediately reply to questions about the announcement. U.S. Steel kept rising after hours and reached $54, just shy of Nippon Steel's $55-per-share offer price made in late 2023. While no details were released, investors expressed confidence that terms will be similar to those agreed in 2023. Investors said that eventually U.S. Steel will no longer be publicly traded and they will receive a cash payout for their shares. The deal has been one of the most highly anticipated on Wall Street after it morphed into the political arena with fears that foreign ownership would mean job losses in Pennsylvania where U.S. Steel is headquartered. It factored into last year's election that saw Donald Trump returned to the White House. Pennsylvania Senator Dave McCormick, who also called the deal a 'partnership,' on Friday said it was a 'huge victory for America and the U.S. Steel Corporation,' that will protect more than 11,000 Pennsylvania jobs, and support the creation of at least 14,000 more. The last pieces of the deal came together surprisingly fast. The Committee on Foreign Investment in the U.S., which reviews deals for national security risks, told the White House this week that the security risks can be addressed, Reuters reported, moving the final decision to Trump's desk. Following an earlier CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds. The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view. The companies argued Biden opposed the deal when he was running for reelection to win support from the United Steelworkers union in the battleground state of Pennsylvania. The Biden administration had defended the review as essential to protecting security, infrastructure, and supply chains. Trump also initially opposed the deal, arguing the company must be owned and operated in the U.S. The United Steelworkers were against the deal as recently as Thursday when they urged Trump to block the deal despite the $14 billion investment pledge from Trump. For investors, including prominent hedge funds, the news spells relief after more than a year of waiting for a resolution. 'There were huge high fives all around today,' one recent investor said, adding 'We understood Donald Trump's psyche and we played it to our advantage here.' Investors said Trump appears to have won ground after the pledge for new investments was increased. This deal ensures that steelmaking will live on in Pittsburgh for generations, another investor said.
Yomiuri Shimbun
23-05-2025
- Business
- Yomiuri Shimbun
U.S. Panel Divided over Nippon Steel Bid for US Steel but Path Forward Seen, Says Official
Reuters file photo Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. WASHINGTON (Reuters) — A national security panel was divided in its recommendation to President Donald Trump on Nippon Steel 5401.T's bid for U.S. Steel X.N but most panel members believe any security risks posed by the deal can be addressed, a White House official said. The Committee on Foreign Investment in the U.S. on Wednesday submitted a recommendation to Trump about the national security implications of the merger, Reuters reported, as directed by Trump in an executive order signed last month. But key details had not emerged until now about the contents of the document, submitted after Japan's Nippon Steel supercharged its pledged investment in U.S. Steel to $14 billion in a last-ditch bid for approval, as reported by Reuters. We've received the report and the President will review the recommendations of each agency to determine if additional action on this matter is necessary, the White House official said in a statement. 'CFIUS agencies were not unanimous in their recommendation, but the majority believe any risks can likely be addressed through mitigation,' the person added, declining to be named because the matter was not public. Nippon Steel declined to comment. U.S. Steel did not immediately respond to a request for comment. The recommendation complies with an executive order signed by Trump last month, which tasked CFIUS with outlining whether any measures proposed by the companies assuage the national security risks previously identified by the committee. The April directive also asked for a statement describing the position of each agency that is a member of CFIUS as well as the reasons behind it. Trump will now have 15 days to decide the fate of the transaction, although the timeline could slip. Following a previous CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds. The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view. Reuters reported this week that if the merger is approved, Nippon Steel has said it would invest $14 billion into U.S. Steel's operations including up to $4 billion in a new steel mill.
Yahoo
23-05-2025
- Business
- Yahoo
Exclusive-US panel divided over Nippon Steel bid for US Steel but path forward seen, says official
By Alexandra Alper WASHINGTON (Reuters) -A national security panel was divided in its recommendation to President Donald Trump on Nippon Steel's bid for U.S. Steel but most panel members believe any security risks posed by the deal can be addressed, a White House official said. The Committee on Foreign Investment in the U.S. on Wednesday submitted a recommendation to Trump about the national security implications of the merger, Reuters reported, as directed by Trump in an executive order signed last month. But key details had not emerged until now about the contents of the document, submitted after Japan's Nippon Steel supercharged its pledged investment in U.S. Steel to $14 billion in a last-ditch bid for approval, as reported by Reuters. "We've received the report and the President will review the recommendations of each agency to determine if additional action on this matter is necessary," the White House official said in a statement. "CFIUS agencies were not unanimous in their recommendation, but the majority believe any risks can likely be addressed through mitigation," the person added, declining to be named because the matter was not public. Nippon Steel declined to comment. U.S. Steel did not immediately respond to a request for comment. The recommendation complies with an executive order signed by Trump last month, which tasked CFIUS with outlining whether any measures proposed by the companies assuage the national security risks previously identified by the committee. The April directive also asked for a statement describing the position of each agency that is a member of CFIUS as well as the reasons behind it. Trump will now have 15 days to decide the fate of the transaction, although the timeline could slip. Following a previous CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds. The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view. Reuters reported this week that if the merger is approved, Nippon Steel has said it would invest $14 billion into U.S. Steel's operations including up to $4 billion in a new steel mill.
Business Times
22-05-2025
- Business
- Business Times
US panel divided over Nippon Steel bid for US Steel but path forward seen, says official
[WASHINGTON] A national security panel was divided in its recommendation to President Donald Trump on Nippon Steel's bid for US Steel but most panel members believe any security risks posed by the deal can be addressed, a White House official said. The Committee on Foreign Investment in the US on Wednesday submitted a recommendation to Trump about the national security implications of the merger, Reuters reported, as directed by Trump in an executive order signed last month. But key details had not emerged until now about the contents of the document, submitted after Japan's Nippon Steel supercharged its pledged investment in US Steel to US$14 billion in a last-ditch bid for approval, as reported by Reuters. 'We've received the report and the President will review the recommendations of each agency to determine if additional action on this matter is necessary,' the White House official said in a statement. 'CFIUS agencies were not unanimous in their recommendation, but the majority believe any risks can likely be addressed through mitigation,' the person added, declining to be named because the matter was not public. Nippon Steel declined to comment. US Steel did not immediately respond to a request for comment. The recommendation complies with an executive order signed by Trump last month, which tasked CFIUS with outlining whether any measures proposed by the companies assuage the national security risks previously identified by the committee. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The April directive also asked for a statement describing the position of each agency that is a member of CFIUS as well as the reasons behind it. Trump will now have 15 days to decide the fate of the transaction, although the timeline could slip. Following a previous CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds. The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view. Reuters reported this week that if the merger is approved, Nippon Steel has said it would invest US$14 billion into US Steel's operations including up to US$4 billion in a new steel mill. REUTERS
Yahoo
22-05-2025
- Business
- Yahoo
US panel submits view on Nippon Steel-US Steel deal to Trump, source says
By Alexandra Alper (Reuters) - A powerful U.S. national security panel on Wednesday submitted a recommendation to President Donald Trump on Nippon Steel's fraught $14.9 billion bid for U.S. Steel, a person familiar with the matter said, without providing further detail on its contents. The submission complies with an executive order signed by Trump last month, which tasked the Committee on Foreign Investment in the U.S. with outlining whether any measures proposed by the companies assuage the national security risks previously identified by the committee. Reuters could not learn the content of the committee's recommendation. Trump will now have 15 days to decide the fate of the transaction, although the timeline could slip. The companies and the Treasury Department, which leads CFIUS, did not immediately respond to requests for comment. Following a previous CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds. The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view. Reuters reported earlier this week that Nippon Steel has floated plans to invest $14 billion in U.S. Steel's operations including up to $4 billion in a new steel mill if the Trump administration green lights its merger bid, in response to requests from the government for more investment. The April directive asks for a statement describing the position of each agency that is a member of CFIUS as well as the reasons behind it.
