Nippon Steel shares soared on Tuesday after former U.S. President Donald Trump ordered a fresh review of the company’s proposed takeover of U.S. Steel—a deal previously blocked by the Biden administration.
The stock jumped 9.2% to 2,995.0 yen during Tokyo trading, also lifted by a broader market rebound. The Nikkei 225 index climbed as much as 6% on the day.
According to a presidential directive issued Monday, Trump asked the Committee on Foreign Investment in the United States (CFIUS) to reassess the nearly $15 billion deal. He said the committee has 45 days to determine whether the security measures proposed by U.S. Steel and Nippon Steel are enough to address national security concerns.
Earlier this year, President Joe Biden blocked the acquisition, citing risks to key U.S. supply chains if U.S. Steel were to come under foreign control. In response, both companies filed a lawsuit against the decision.
Although Trump initially opposed the deal, his stance appeared to soften after a February meeting with Japanese Prime Minister Shigeru Ishiba.
Nippon Steel and U.S. Steel have promised to boost investment in the United States. The Japanese company also offered to give the U.S. government veto power over key decisions related to American steel production.
U.S. Steel shares rose roughly 16% in overnight trading following the news.
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