U.S. Steel Corp Merger Review Reinstated by President Trump

In a recent development, President Trump has ordered a comprehensive review of the previously halted merger between United States Steel Corporation (NYSE:X) and Nippon Steel North America, Inc. This move comes after the merger faced a prohibition order from President Biden earlier this year. U.S. Steel, currently valued at $10.08 billion, has shown strong market performance with a 31.1% gain year-to-date, according to InvestingPro data.

On April 6, 2025, the President issued a memorandum directing the Committee on Foreign Investment in the United States (CFIUS) to undertake a de novo review of the merger's implications for national security. The CFIUS has been given until May 21, 2025, to present its recommendation.

This decision follows a lawsuit filed by U.S. Steel and Nippon Steel Corporation, which contested the prohibition order on constitutional due process and statutory rights grounds. The lawsuit also challenged CFIUS's initial failure to review the merger on national security grounds.

The merger, initially announced on December 18, 2023, would result in U.S. Steel becoming a wholly owned subsidiary of Nippon Steel North America. However, the process was interrupted by an order from President Biden on January 3, 2025, citing national security concerns. Despite the merger uncertainty, U.S. Steel maintains a "GOOD" overall Financial Health Score and has seen its stock price surge to near its 52-week high of $44.87. For deeper insights into U.S. Steel's financial health and detailed merger analysis, investors can access comprehensive research through InvestingPro, which offers exclusive access to over 30 key financial metrics and expert analysis.

The legal proceedings regarding the merger were set to continue with oral arguments in May 2025. However, the Department of Justice has requested a 60-day abeyance following the Presidential Memorandum to allow for the CFIUS review and subsequent presidential action.

U.S. Steel, along with Nippon Steel North America and Nippon Steel Corporation, has consented to the motion, which is pending court approval. The outcome of the CFIUS review and the President's decision will be closely watched by investors and industry observers alike.

This news comes from a recent SEC filing, which also noted that the provided information is furnished and not filed, thus not subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, nor incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act.

Investors and stakeholders of U.S. Steel Corp (NYSE:X) and Nippon Steel North America are awaiting further developments as the CFIUS conducts its review and the President considers any potential actions. The stock's current trading levels suggest it may be overvalued according to InvestingPro Fair Value analysis, with the company showing impressive momentum through a 26.53% price return over the past six months. Investors seeking to make informed decisions about U.S. Steel can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers, which provides comprehensive analysis of the company's fundamentals and merger implications.

In other recent news, United States Steel Corporation has been at the center of significant developments. Ancora Holdings Group, a major shareholder, has proposed a strategy for U.S. Steel's future, emphasizing the potential benefits of its board nominees and advocating for a delay in the company's Annual Meeting. This request is linked to a 45-day review by the Committee on Foreign Investment in the United States (CFIUS) regarding U.S. Steel's proposed merger with Nippon Steel Corporation. The merger, initially blocked by President Biden due to national security concerns, is now under a new review ordered by President Trump. BMO Capital Markets recently downgraded U.S. Steel's stock rating from Outperform to Market Perform, citing ownership uncertainties amid ongoing merger discussions. Despite these uncertainties, Nippon Steel has announced a second delay in the closure of its proposed takeover of U.S. Steel, now expected to close in the second quarter of 2025. The delay, however, is not anticipated to impact Nippon's earnings. These developments are being closely watched by investors as they could significantly affect the future of both companies.

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