Bank of America just raised its EUR/USD forecast
Investing.com -- Shares of United States Steel Corporation (NYSE:X) surged 12.2% while Nippon Steel Corp (TYO:5401) saw its shares tumble by 7% following news that President Donald Trump has ordered a review of the previously blocked acquisition of U.S. Steel by Nippon Steel. The review, which could potentially overturn a decision by President Joe Biden, has sparked investor interest in the possible revival of the deal.
On January 3, 2025, President Biden had prohibited the sale of U.S. Steel to Nippon Steel and associated entities, citing national security concerns. However, the new directive from President Trump calls for a fresh review by the Committee on Foreign Investment in the United States (CFIUS), raising prospects that the deal could go through subject to certain conditions that might mitigate any identified national security risks.
The CFIUS review will be conducted anew and confidentially, with a recommendation due to President Trump within 45 days. This recommendation will assess whether any proposed measures by the parties involved are sufficient to address concerns. The outcome of this review is keenly awaited by investors, as it could significantly impact the future of both companies involved.
The market's response reflects optimism for U.S. Steel, which could benefit from a successful acquisition, and concern for Nippon Steel, which faces uncertainty and potential challenges in pursuing the transaction. The review process will involve a thorough analysis of the implications for national security and may include input from multiple member agencies.
Investors are closely monitoring the situation, as the decision to block or approve the sale has far-reaching implications for the steel industry and could set a precedent for future international business deals involving U.S. companies. The next few weeks will be critical as stakeholders await the CFIUS's recommendation and subsequent presidential action.
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