Trump Eyes Approval Of Controversial Steel Merger: Nippon, US Steel Await Key Decision

The Trump administration granted Nippon Steel and United States Steel Corporation X a 21-day extension in their lawsuit over the proposed merger, allowing further negotiations with regulators.

What Happened: The Wall Street Journal reported that the Department of Justice pushed back the litigation briefing deadlines, citing a motion filed on Friday.

Additionally, the oral argument, initially set for April 24, has been rescheduled to May 12.

The move indicates that President Donald Trump may approve the deal, reports CNN.

Former President Joe Biden blocked it, citing national security and domestic supply chain concerns.

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Why It Matters: Last month, Trump contemplated approving Nippon Steel’s $14.1 billion bid for U.S. Steel as an investment rather than a purchase. The remarks were made in the presence of Japanese Prime Minister Shigeru Ishiba at the Oval Office.

The latest extension aims to facilitate continued discussions between the companies and the government in an attempt to resolve the situation without proceeding to a full legal resolution.

In December 2023, Nippon Steel agreed to purchase U.S. Steel, but ended up in a legal dispute with the Biden administration last year over the stalled acquisition.

In early January, CEO Eiji Hashimoto dismissed tariffs as an inadequate solution for bolstering the U.S. steel industry. He defended the merger, asserting that it would strengthen national security by creating a more resilient and competitive company.

In response, Nippon Steel and U.S. Steel filed a lawsuit in January, claiming the decision was influenced by President Biden’s desire to gain favor with the United Steelworkers union in Pennsylvania.

According to Benzinga Pro, X stock has gained over 3% in the past year. Investors can gain exposure to the stock via SPDR S&P Metals & Mining ETF XME.

Price Action: X shares are trading higher by 0.36% to $40.26 premarket at last check Tuesday.

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