U.S. Steel seeks renewed CFIUS review for Nippon Steel acquisition
Deal News | Apr 08, 2025 | EIN
The Trump administration has ordered a new national security review for Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel after the deal was previously blocked by President Biden. The Committee on Foreign Investment in the United States (CFIUS) will have 45 days to issue a recommendation, with all new Trump administration members part of the review. U.S. Steel and Nippon Steel, along with activist investor Ancora Holdings, are in discussions with the U.S. government, aiming to mitigate national security risks and complete the transaction. Nippon has offered to increase its investment into U.S. Steel to $7 billion. Ancora, a 1% stakeholder in U.S. Steel, has reversed its opposition and now supports the merger. This turnaround comes amidst ongoing lawsuits and the backdrop of U.S. government’s legal delays in response to the challenge. U.S. Steel, along with various stakeholders, including environmental group The Breathe Project, are engaged in discussions over the future impact and benefits of the acquisition, particularly on jobs, national security, and environmental commitments. The announcement has led to a 16% increase in U.S. Steel's stock.
Sectors
- Steel Manufacturing
- Government and Public Policy
- Environmental Advocacy
Geography
- United States – Primary location of U.S. Steel's operations and where the government review process is taking place.
- Japan – Nippon Steel, a Japanese company, is the bidder seeking to acquire U.S. Steel.
Industry
- Steel Manufacturing – Involves the production and manufacturing of steel, directly relevant as U.S. Steel and Nippon Steel are major players in this sector.
- Government and Public Policy – Involves governmental decisions impacting business operations, as the article discusses government-ordered reviews and national security concerns.
- Environmental Advocacy – Focuses on the environmental impact of industrial operations, mentioned due to The Breathe Project's concerns about U.S. Steel's facilities.
Financials
- $14.9 billion – Proposed deal value for Nippon Steel's acquisition of U.S. Steel.
- $7 billion – Proposed investment by Nippon Steel in U.S. Steel's facilities.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| U.S. Steel | Target Company | Company | An American steel producer involved in merger discussions with Nippon Steel. |
| Nippon Steel | Bidding Company | Company | Largest Japanese steelmaker seeking to acquire U.S. Steel. |
| President Donald Trump | Government | Person | Ordered a new review of the proposed acquisition. |
| President Joe Biden | Government | Person | Previously blocked the acquisition due to national security concerns. |
| Committee on Foreign Investment in the United States (CFIUS) | Government Agency | Government | Responsible for reviewing national security implications of foreign investments. |
| Ancora Holdings | Activist Investor | Company | Holds a 1% stake in U.S. Steel and initially opposed the deal but now supports it. |
| Cleveland-Cliffs | Legal Adversary | Company | Competitor in the steel industry allegedly involved in influencing block against Nippon's bid. |
| The United Steelworkers Union | Union | Charity | Labor union who exclusively approved Cliffs' efforts to acquire U.S. Steel. |
| The Breathe Project | Environmental Advocate | Charity | Nonprofit focused on the environmental impact of the acquisition. |
| Howard Lutnick | CFIUS Member | Person | U.S. Commerce Secretary involved in discussions with Nippon Steel. |