Quick overview

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President Donald Trump approved the merger of US Steel and Nippon Steel after the Japanese steelmaker’s prior attempt to buy its US rival was thwarted on national security grounds.

Trump stated, “This will be a planned partnership between United States Steel and Nippon Steel, which will add $14 billion to the US economy and create at least 70,000 jobs.”. According to the president, most of the investment will happen over the next 14 months, and Steel’s headquarters will still be in Pittsburgh.

US Steel’s stock jumped more than 20% to close at $52 per share after Trump’s announcement.

President Joe Biden cited national security concerns to prevent Nippon Steel from paying $14.09 billion to acquire US Steel. Biden stated that the acquisition would put US supply chains at risk. However, Trump directed the Committee in April to conduct a new review of the proposed acquisition.

Nippon secured the purchase of U.S Steel by paying a substantial premium in a December 2023 auction, but politicians and the influential United Steelworkers Union (USW) opposed the deal.

Biden has stated his desire for U. S. Steel to be owned and operated domestically. President-elect Donald Trump has pledged to thwart the deal once he assumes office in January