U.S. President Trump greenlights Japanese acquisition of U.S. Steel corporation.
** Trump Endorses U.S.-Japan Steel Partnership, Promise of 70,000 Jobs **
In a significant turn of events, President Donald Trump has approved a strategic partnership between U.S. Steel and Nippon Steel, a Japanese firm, after earlier obstructions to a full foreign takeover. The agreement hinges on substantial investments from Nippon Steel in U.S. Steel operations within the United States.
In a post on Truth Social, Trump announced, "This will foster a planned partnership between United States Steel and Nippon Steel that will generate at least 70,000 jobs and provide a $14 billion boost to the U.S. economy." Details of the deal remain scant.
Trump anticipates most of these investments will be made within the next 14 months, with a rally at U.S. Steel's Pittsburgh headquarters scheduled for next Friday. Nippon Steel has welcomed Trump's decision. The White House has not yet responded to questions regarding the announcement.
For investors, including prominent hedge funds, the news was a long-awaited relief. "High fives all around today," said one investor, adding, "We knew how to sway Donald Trump, and we capitalized on that." Apparently, the promise of new investments sealed the deal.
Another investor commented, "This deal ensures steel production in Pittsburgh continues for future generations." Pennsylvania Senator Dave McCormick hailed it as a "triumph for America and the U.S. Steel Corporation." The partnership will secure more than 11,000 jobs in Pennsylvania and aid in the creation of at least 14,000 more.
Earlier, in late 2023, Nippon Steel had proposed acquiring the U.S. company for $14.9 billion. Former President Joe Biden had blocked the merger in early January on national security grounds, but later withdrew the order before Trump took office. On April 7, Trump ordered a fresh review of the deal, leading to the recent agreement. Post-announcement, U.S. Steel's stock continued to climb in after-hours trading, nearing the $55 per share offer made by Nippon Steel in 2023.
Source: ntv.de, mau/rts
- Steel Industry
- Donald Trump
- Japan
The agreement between U.S. Steel and Nippon Steel, endorsed by Donald Trump, promises to generate at least 70,000 jobs and contribute a $14 billion boost to the American economy, thereby fostering a significant impact on the steel industry in the United States. This partnership, comprising substantial investments from Nippon Steel, is strategically positioned within the business and finance sector, influencing employment policies and the community policy concerning industry employment within the country.
