Trump says he does not want to see US Steel go to Japan
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Former US president Joe Biden had blocked the merger in January on national security grounds.
PHOTO: AFP
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WASHINGTON - US President Donald Trump said on April 9 he does not want US Steel Corp to go to Japan, suggesting he does not support Nippon Steel’s bid for the American steel producer.
The comment appeared to contradict recent actions by the Trump administration. On April 7, Mr Trump directed a national security panel to take a fresh look at Nippon Steel’s US$14 billion (S$19 billion) bid for US Steel
Following Mr Trump’s latest comment, shares of US Steel fell 13 per cent in after-hours trading on April 9.
“We don’t want to see it go to Japan,” Mr Trump said, adding “We love Japan.”
“We don’t want it to go to Japan or any other place, and we’re working with them,” Mr Trump said.
US Steel and Nippon Steel did not immediately respond to requests for comment.
Outgoing president Joe Biden had blocked the merger in January
After Mr Biden’s decision, the two companies sued the Committee on Foreign Investment in the United States (CFIUS), which scrutinises foreign investments for national security risks, alleging Mr Biden had prejudiced the committee’s decision and violated the companies’ right to a fair review.
The deal was announced in December 2023 and almost immediately ran into opposition across the political spectrum ahead of the November 5 US presidential election. Both then-candidates Mr Trump and Mr Biden vowed to block the purchase of the storied American company.
The companies had argued that Mr Biden opposed the deal when he was running for re-election to win support from the United Steelworkers union in the battleground state of Pennsylvania, where US Steel is headquartered.
The Biden administration had defended the review as essential to protecting security, infrastructure, and supply chains.
In March, the Trump administration filed a motion to extend two deadlines in the lawsuit to give the government more time to wrap up merger talks with the firms.
Late on April 7, the Trump administration and the companies asked an appeals court to pause their litigation until June 5 while CFIUS reviews the tie-up again, noting that the process has the potential to “fully resolve” the companies’ claims. REUTERS
