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Investing.com-- Nippon Steel shares rose sharply on Tuesday after U.S. President Donald Trump ordered a new review of the company’s takeover of U.S. Steel, which was blocked by the Biden administration.
Nippon Steel Corp (TYO:5401) shares jumped 9.2% to 2,995.0 yen in Tokyo trade, also benefiting from a broader rebound in Japanese markets. The benchmark Nikkei 225 index rose as much as 6% on Tuesday.
Trump on Monday instructed the Committee on Foreign Investment in the U.S. to review the nearly $15 billion deal, according to a Presidential action. Trump is seeking to gauge whether “further action” on the matter may be appropriate.
Trump said the CFIUS has 45 days to submit a recommendation on whether the conciliatory measures suggested by U.S. Steel (NYSE:X) and Nippon are “sufficient to mitigate any national security risk.”
The CFIUS had last time deferred the final decision on the deal to the White House.
Biden had blocked the deal in January on concerns over a potential threat to critical U.S. supply chains from them coming under foreign ownership. U.S. Steel and Nippon Steel had sued Biden over the block.
Trump has also largely opposed the deal, but had appeared to soften his position after a meeting with Japanese Prime Minister Shigeru Ishiba in February.
Nippon and U.S. Steel have vowed to ramp up investment in the U.S., with the Japanese firm also offering the government veto power in any decisions on U.S. steelmaking.
U.S. Steel shares had also soared about 16% in overnight trade.