Trump clears Nippon merger with U.S. Steel

President Donald Trump made a significant announcement on Friday regarding the merger of U.S. Steel and Nippon Steel. This decision comes after Nippon Steel’s previous attempt to acquire U.S. Steel was blocked on national security grounds. Trump stated that this merger will result in a planned partnership between the two companies, creating a substantial 70,000 jobs and adding $14 billion to the U.S. economy.

In his statement on the social media platform Truth Social, Trump revealed that U.S. Steel’s headquarters will remain in Pittsburgh, with the majority of the investment expected to take place over the next 14 months. Following the announcement, U.S. Steel’s shares experienced a significant surge of over 20%, closing at $52.01 per share.

It is worth noting that President Joe Biden had previously prevented Nippon Steel from acquiring U.S. Steel for $14.9 billion in January, citing concerns over national security and potential risks to critical supply chains in the U.S. However, Trump’s decision to approve the merger came after ordering a new review of the proposed acquisition in April. He directed the Committee on Foreign Investment in the United States to reassess the situation and determine if any further action was necessary.

In light of this development, Trump also announced plans to hold a rally at the U.S. Steel headquarters in Pittsburgh on May 30th. This event is expected to further highlight the significance of the merger and its positive impact on the American economy.

Overall, the approval of the U.S. Steel and Nippon Steel merger by President Trump marks a significant milestone that promises to create jobs, boost the economy, and strengthen the partnership between the two steel giants. The decision reflects a strategic move towards enhancing domestic capabilities and ensuring a sustainable future for the steel industry in the United States.