*

Biden administration blocked the deal on national security

concerns

*

Companies welcome Trump's order to review their merger bid

*

U.S. Steel, Nippon Steel ( NISTF ) share prices surge

(Adds share reaction and Japan's industry minister's comments

in paragraphs 4, 7-8)

By Alexandra Alper and Satoshi Sugiyama

April 7 (Reuters) - President Donald Trump on Monday

directed a U.S. national security panel to take a fresh look at

Nippon Steel's ( NISTF ) bid for U.S. Steel to help determine if "further

action" is appropriate, raising hopes that the deal could gain

an elusive green light.

"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 ( NISTF )) to assist me in determining whether

further action in this matter may be appropriate," the memo

reads.

Shares in U.S. Steel shot up nearly 14%, as investors

took it to mean the administration was considering approving the

merger, which former President Joe Biden blocked in January on

national security grounds.

Nippon Steel ( NISTF ) shares jumped almost 10% in Tokyo

morning trade on Tuesday.

Nippon Steel ( NISTF ) said it was pleased by the news. "We have been

confident from the outset that an objective, fact-based review

of our proposed partnership with U.S. Steel will show that it

strengthens American economic and national security," it said.

A spokesperson for U.S. Steel said the company looks forward

"to continuing to work closely with President Trump and his

administration to finalize this significant and important

investment."

Muto Yoji, Japan's industry minister, declined to comment on

Tuesday whether Nippon Steel's ( NISTF ) bid was discussed during Monday's

call between Trump and Japanese Prime Minister Shigeru Ishiba

who is seeking to reverse U.S. tariffs on Japanese goods.

"We believe that the relevant parties will continue to

consider and coordinate this investment plan, and the government

will endeavour to promote communication between the relevant

parties as necessary," Muto told reporters.

After Biden's decision, the two companies sued CFIUS, which

scrutinizes foreign investments for national security risks,

alleging that Biden had prejudiced the committee's decision and

violated the companies' right to a fair review.

They argued Biden did so in 2024 by expressing opposition to

the deal when he was running for re-election, to win support

from the United Steelworkers union in the swing state of

Pennsylvania, where U.S. Steel is headquartered. The Biden

administration had defended the review as essential to

protecting security, infrastructure, and supply chains.

Last month, the Trump administration filed a motion to

extend two deadlines in the lawsuit to give the government more

time to wrap up merger talks with the firms.

Late on Monday, the Trump administration and the companies

asked an appeals court to pause their litigation until June 5

while CFIUS reviews the tie-up again, noting that the process

has the potential to "fully resolve" the companies' claims.