Trump indicates potential allowance for US Steel to negotiate deal with Nippon, a move previously halted by Biden's administration.
In an unexpected twist, it appears that the U.S. Steel and Nippon Steel merger might just be back on the table, thanks to some shrewd negotiations with the Trump administration. According to a court filing, the government has requested a 21-day extension on the briefing deadlines in the ongoing lawsuit against the Committee on Foreign Investment in the United States (CFIUS)[2].
The extension hints at ongoing discussions between the companies and the government, with the ultimate goal of resolving the issues that initially led to the rejection of the merger under Biden's presidency due to national security concerns[1][3]. Interestingly, Trump expressed his openness to Nippon Steel taking a minority stake in U.S. Steel back in February[5].
Nippon Steel seems to be embracing this new approach, considering a shift in strategy that moves away from the initial full acquisition plan[2][4]. However, it's important to note that the merger still faces significant challenges, including politically sensitive issues like national security and job implications in states like Pennsylvania, where U.S. Steel is headquartered[1][2].
In the lawsuit against CFIUS, U.S. Steel and Nippon Steel allege that Biden prejudiced the committee's decision and violated their right to a fair review. They claim that this action was taken to curry favor with the United Steelworkers (USW) union in Pennsylvania, a swing state crucial for the president's re-election bid[6].
This extension of briefing deadlines, while subject to court approval, may indicate a potential softening of the stance on the merger by the Trump administration. Whether this translates into a full-fledged approval remains to be seen, but one thing's for sure - the steel game just got a whole lot more interesting!
The Trump administration's request for a 21-day extension on the briefing deadlines suggests ongoing discussions about the potential resurrection of the U.S. Steel and Nippon Steel merger, initially rejected due to national security concerns. However, the merger still faces risks, especially considering the politically sensitive issues involving national security and job implications for steelworkers, especially in Pennsylvania. The U.S. Steel and Nippon Steel lawsuit against CFIUS alleges that the Biden administration prejudiced the decision-making process and violated their right to a fair review.
