By Yuka Obayashi and Ritsuko Shimizu

TOKYO (Reuters) - Japan's Japanese Steel is still committed to gaining full stake in U.S. Steel, a senior director said, adding that it is meeting with U.S. Treasury Secretary Scott Bessent to clarify President Donald Trump's position on the deal.

Steel manufacturers face a May 21 deadline to complete a national security review of the proposed $15 billion merger of Foreign Investment (CFIUS), which was blocked by former President Joe Biden in January on the national security field after a previous review.

In April, Trump directed CFIUS to reevaluate the deal and raised hopes of a reversal, although he said in February that the deal would take the form of an investment rather than a purchase. Trump is expected to decide the fate of the deal before June 5.

Chief negotiator Nippon Steel Vice Chairman Takahiro Mori Vice Chairman Nippon Steel: “Our intention to make a full acquisition remains the same.

He said that only full ownership would allow Nippon Steel to share its core technology and strengthen U.S. Steel, not in a joint venture.

"There is no free technology," Morrie said.

He said Nippon Steel has asked to meet with Bessent, hosted by CFIUS, to better understand Trump's position before the final decision.

Reuters reported on Tuesday that Japan Steel plans to invest $14 billion in U.S. Steel's operations, including a Trump administration's green bid for the iconic U.S. company, including a new factory in a new factory, and involves three documents.

Mori declined to comment on the details of the CFIUS talks, but said any increase in investment will be associated with higher returns and will not damage the company's financial position.

"This deal will make our steel and the United States stronger," Morrie said, adding that by promoting foreign investment and domestic manufacturing, it brings "100% aligned with Trump's policies."

"My opinion is that if President Trump fully understands (strategic meaning), he will approve it," Morrie said.

He said the majority of the new U.S. Steel Commission will be American, with three independent directors appointed by CFIUS (actually the U.S. government) addressing national security issues.

The world's fourth-ranked steel manufacturer expects net profit to fall 43% in the fiscal year ending March 2026, as a result of global steel prices falling driven by China's excess production and exports and the impact of U.S. tariffs.

(Reported by Yuka Obayashi, edited by Ritsuko Shimizu; Raju Gopalakrishnan)