M&A News: U.S. Steel Stock (X) Surges Despite Raised Voices Against $15B Nippon Deal

Shares in U.S. Steel (X) were higher today despite growing uncertainty about whether a $15 billion takeover by Japan’s Nippon Steel will be given the thumbs up by President Trump.

Divided Decision

X stock was up 3% in pre-market trading as it was revealed by Reuters that the Committee on Foreign Investment in the United States (CFIUS) was divided over whether to recommend the deal or not.

CFIUS reviews foreign investment for national security risks and handed over its decision to Trump earlier this week. The president now has 15 days to make a final decision, although this timeline could slip.

It is understood that the committee is divided over the deal but that most panel members believe any security risks posed by the deal can be addressed.

A White House official said: “CFIUS was not unanimous, but the majority believe any risks can likely be addressed through mitigation.” Following a previous CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds.

If the merger is approved, Nippon Steel has said it would invest $14 billion in U.S. Steel’s operations, including up to $4 billion for a new steel mill.

Undercutting Concerns

However, this did little to sway the United Steelworkers union,which urged Trump to block the deal.

“Now, as it continues to make flashy promises about proposed investments, it remains clear Nippon is simply seeking to undercut our domestic industry from the inside,” the union said.

Trump initially stated after his re-election that he “wouldn’t mind” if Nippon Steel bought a minority stake in U.S. Steel. He said he did not want U.S. steel to be owned by a foreign power.

Analysts believe that the most likely outcome is that U.S. Steel and Nippon Steel will work with the Trump administration to secure an investment deal instead of a takeover or merger.

Is X a Good Stock to Buy Now?

On TipRanks, X has a Hold consensus based on 1 Buy and 4 Hold ratings. Its highest price target is $50. X stock’s consensus price target is $43 implying an 0.23% upside.

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