(CTN News) – The shares of U.S. Steel have reached their peak in the last 52 weeks due to President Donald Trump’s order to initiate a national security inquiry into Nippon Steel’s proposed takeover of U.S. Steel for more than $15 billion.

This is attributed to the mandate’s public revelation.

Former President Joe Biden invoked his veto authority about the agreement just before leaving office. President Trump had committed to exercising the same ability to veto the pact in the months before his inauguration.

President Trump directed the Committee on Foreign Investment in the United States late Monday night to investigate the transaction “to assist me in determining whether further action on this matter may be warranted.” The measure was executed in accordance with President Trump’s instructions.

The stock price rose by sixteen percent on Monday and experienced a similar increase on Tuesday.

A confidential examination will be performed to determine potential threats to national security presented by the proposed arrangement. Should any concerns emerge,

U.S. Steel and Nippon can settle individually.

The Committee on Foreign Investment in the United States (CFIUS) will notify President Trump after forty-five days regarding the adequacy of the solutions suggested by Nippon and U.S. Steel in addressing the stated issues.

On Tuesday, Ancora Holdings Group, a minority stakeholder in U.S. Steel, said that it will not contest Nippon’s proposed acquisition of the company. Nippon Steel is presently assessing the potential acquisition of United States Steel.

The asset management department sought the rescheduling of U.S. Steel’s annual shareholders meeting, first set for May 6th, to the Thursday following June 18th. This safeguard is enacted to guarantee that shareholders have sufficient time to evaluate the results of the 45-day investigation carried out by the CFIUS.

Ancora stated that “there is no legitimate justification for U.S. Steel to expedite its Annual Meeting prior to the conclusion of the government review,” and urged the business to refrain from making this decision precipitously.

In 2023, Nippon Steel will purchase United States Steel for an estimated $15 billion. This issue gained political significance during the 2024 presidential election due to the potential implications of the Pittsburgh steelmaker’s situation in Pennsylvania, a designated swing state.

Trump opposed the sale of the corporation during his presidential campaign, although Vice President Biden endorsed the United Steelworkers’ initiative to prevent the merger. Vice President Biden received a report from the Committee on Foreign Investment in the United States (CFIUS) at the end of the prior year.

A multitude of persons had eagerly awaited this inquiry, as it pertained to their concerns about the merger’s possible implications for national security.

The government commission could not prove a national security issue.

Vice President Biden honored his prior pledge to obstruct the sale of Steeltown USA’s most distinguished corporation by canceling the proposed transaction. This was achieved one month later.

Joe Biden, a former Vice President, has already articulated his discontent with the deal during the presidential campaign.

The United Steelworkers have voiced their support for him owing to concerns about the corporation’s financial transparency and its capacity to either dismiss employees or uphold current labor agreements. They decided to support him because of their concerns about these issues.

Nippon Steel and U.S. Steel initiated a federal lawsuit against Vice President Joe Biden following the announcement. The lawsuit was submitted promptly after the announcement.

A lawsuit was launched against Vice President Joe Biden, claiming that the president of the Steelworkers union and officials from a rival steel manufacturer conspired to impede the acquisition of the Pittsburgh company. They were resistant to Biden’s decision to suspend the intended acquisition of the property in Pittsburgh.

At the beginning of February, President Trump announced that Nippon Steel will not continue with its planned acquisition of U.S. Steel. He indicated that the Japanese company would extend financial support to the American enterprise, which served as a substantial signal.

SOURCE: AP