FILE - The United States Steel Mon Valley Works Clairton Plant in Clairton, Pa., is shown on Monday, Feb. 26, 2024. Generations of Pittsburghers have worked at steel mills, rooted for the Steelers or ridden the rollercoaster at Kennywood amusement park, giving them a bird's eye view of the massive smokestacks of Edgar Thomson Works, the region's last blast furnace. Now, steel town USA's most storied steel company, U.S. Steel, is on the cusp of being bought by Japanese steelmaker Nippon Steel Corp. in a deal that is kicking up an election-year political maelstrom across America's industrial heartland. (AP Photo/Gene J. Puskar, File)
US Steel hits 52-week high after Trump orders new security review of Nippon Steel bid
By Michelle Chapman/The Associated Press
FILE - The United States Steel Mon Valley Works Clairton Plant in Clairton, Pa., is shown on Monday, Feb. 26, 2024. Generations of Pittsburghers have worked at steel mills, rooted for the Steelers or ridden the rollercoaster at Kennywood amusement park, giving them a bird's eye view of the massive smokestacks of Edgar Thomson Works, the region's last blast furnace. Now, steel town USA's most storied steel company, U.S. Steel, is on the cusp of being bought by Japanese steelmaker Nippon Steel Corp. in a deal that is kicking up an election-year political maelstrom across America's industrial heartland. (AP Photo/Gene J. Puskar, File)
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.
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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