(Reuters) -President Donald Trump on Monday directed a powerful U.S. national security panel to take a fresh look at Nippon Steel's bid for U.S. Steel to help determine if "further action" is appropriate, raising hopes for an elusive greenlight for the deal.
"I direct the Committee on Foreign Investment in the United States...to conduct a review of the acquisition of U.S. Steel by (Nippon Steel) to assist me in determining whether further action in this matter may be appropriate," the memo reads.
US Steel and Nippon Steel did not immediately respond to requests for comment.
The White House directive sent the share price of U.S. Steel up over 13%, as investors took it to mean the Trump administration was considering greenlighting the merger after former President Joe Biden blocked the tie-up in January on national security grounds.
Following the block, the two companies sued CFIUS, which scrutinizes foreign investments for national security risks, alleging that Biden prejudiced the committee's decision and violated the companies' right to a fair review.
They claimed that the then-President did so to win the favor of the United Steelworkers (USW) union in the swing state of Pennsylvania, where U.S. Steel is headquartered, to improve his chances of re-election.
Last month, the Trump administration filed a motion to extend two deadlines in U.S. Steel, and Nippon Steel's lawsuit against a U.S. national security panel to give the government more time to wrap up merger talks with the firms.
(Reporting by Alexandra Alper in Washington D.C, and Brendan O'Brien in Chicago; Editing by Doina Chiacu)
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