US President Donald Trump says Nippon Steel and US Steel, who had been attempting to merge for 17 months, will form a “partnership.”
In a social media post on Friday afternoon, Trump hailed the milestone as welcome news for Pittsburgh, Pennsylvania-based US Steel and for American industry overall. The president did not explain whether Japan’s Nippon is acquiring US Steel, as per the companies’ original agreement, or pursuing some other type of venture.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 billion dollars to the US economy. The bulk of that investment will occur in the next 14 months,” Trump contends in his post on Truth Social.
US Steel confirms that an arrangement is occurring, also using the word “partnership” but similarly offering no details, Kallanish notes.
US Steel “will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years,” the takeover target says in a brief statement.
Nippon Steel in December 2023 agreed to acquire US Steel for $14.9 billion in cash (see Kallanish 19 December 2023) but has been thwarted at every turn by federal reviews on national security grounds.
Both President Joe Biden and Trump repeatedly stated that they opposed foreign ownership of the iconic 124-year-old Pennsylvania steelmaker, which was once the most valuable company in the world. Since his second presidential term started, Trump consistently has said he would prefer that Nippon make an investment in US Steel rather than own it outright (see Kallanish 10 April).
Trump mentions that he will visit Pittsburgh on 30 May for a “big rally” celebrating the agreement.
Some financial market participants interpreted the announcement as approval of the full acquisition. US Steel’s stock jumped more than 20% in late Friday trading to $52/share, approaching Nippon’s longstanding cash offer of $55/share.
The $14 billion investment figure cited by Trump matches Nippon’s most recent promise conditional upon the Japanese company being allowed to own US Steel (see Kallanish 19 May). A few days ago, the Committee on Foreign Investment in the United States issued its second report on the proposed merger.
How 70,000 jobs will be created also is unexplained. US Steel employed approximately 22,000 people as of 2024, according to its government filings.
