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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIn January, former President Joe Biden blocked the proposed $14.9 billion acquisition of Pittsburgh-based U.S. Steel by Nippon Steel in Japan after the Committee on Foreign Investment in the United States, or CFIUS, failed to reach consensus on the possible national security risks of the deal.
However, President Donald Trump on Monday ordered the committee to review the deal again, giving the steelmakers another possible chance to move forward with the acquisition.
In a memo to multiple federal agency leaders, Trump gave CFIUS another 45 days to submit recommendations “describing whether any measures proposed by the parties are sufficient to mitigate any national security risks identified by CFIUS.”
U.S. Steel first announced plans for the acquisition in December 2023 after another purchase offer from rival Cleveland-Cliffs was rejected.
The deal drew heavy criticism from groups like the United Steelworkers union and praise from officials including Gary Mayor Eddie Melton.
U.S. Steel founded the city of Gary in Indiana in 1906 with its Gary Works operation that at one time employed some 30,000 people. The steelmaker also operates the Midwest Plant in Portage and employs a total of about 4,000 people in Indiana.
The Biden administration followed through on the former president’s threat to block the deal in January, which was quickly followed by a lawsuit from U.S. Steel and Nippon challenging the decision.
About a week later, the Biden administration extended the deadline for the Japanese steelmaker to abandon its acquisition plans to mid-June.
Trump, who had stated prior to being elected to his second term as president that he would also block the deal, suggested in February that Nippon could simply invest in U.S. Steel as a minority owner without buying the company outright.
Monday’s memo from Trump was sent to the U.S. secretaries of state, homeland security, defense, commerce, labor, and energy, as well as the U.S. attorney general and director of national intelligence, among others.
Melton issued a statement Monday saying he is pleased with the order for a new review of the acquisition.
“Nippon Steel has made clear commitments to invest in and strengthen American manufacturing. Their voluntary measures, such as maintaining production capacity within the U.S. and safeguarding jobs at facilities across the country, are vital to securing the future of steelmaking in Gary,” Melton said. “This opportunity has the potential to bring transformative benefits to our community. I am confident that this review will put to rest any doubts about the benefits of this partnership, and I look forward to the positive impact these investments will have on our city and the American steel industry.”
Nippon Steel unveiled plans last December to invest almost $1 billion in U.S. Steel’s Gary Works if its proposed acquisition of the Pittsburgh-based steelmaker goes through.
The Associated Press contributed to this report.
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“It” figured out it could get it’s pockets lined or it makes it feel powerful or both.
Why would we allow a foreign investment on such an important manufacturing material? That is an investment the government should be part of, not TickTock.