Market Reactions and Political Context
Shares of surged 16% Monday and continued to rise nearly 3% before the opening bell Tuesday, following 's directive for a new national security review of 's nearly $15 billion bid.
The proposed acquisition has been a contentious issue, with President blocking the deal just before leaving office, citing national security concerns. Trump, during his campaign, opposed the sale, emphasizing the importance of keeping U.S. Steel domestically owned.
Legal and Regulatory Developments
The (CFIUS) has been tasked with conducting the review, which must be completed within 45 days. The review aims to assess potential national security risks and whether measures proposed by Nippon and U.S. Steel can mitigate these risks.
Following Biden's blockage of the deal, Nippon and U.S. Steel filed a federal lawsuit challenging the decision, claiming political motivations and lack of factual basis for the national security concerns. The Trump administration's recent order has reignited discussions around the acquisition, with both companies expressing optimism.