President Trump publicly opposed Nippon Steel’s $14 billion acquisition of U.S. Steel on Wednesday, contradicting his administration’s recent move to re-review the deal and throwing the high-profile transaction into fresh uncertainty.
Key Developments:
🗣️ Trump’s Stance: “We don’t want [U.S. Steel] to go to Japan—we love Japan, but we’re working with them.”
📉 Market Reaction: U.S. Steel shares plunged 14% after-hours to
38.57 (vs.Nippon’s 55/share offer).
🔄 Policy Whiplash: Just two days earlier, Trump directed CFIUS to reassess the deal, signaling potential approval.
Why It Matters:
Political Football: The deal has faced bipartisan opposition since December 2023, with both Trump and Biden vowing to block it during the election.
Legal Battle: U.S. Steel and Nippon sued CFIUS after Biden blocked the merger in January, calling the move “politically motivated.”
Union Pressure: The United Steelworkers union (key to Pennsylvania’s electoral votes) fiercely opposes foreign ownership.
What’s Next?
CFIUS Review: A June 5 deadline was set for renewed talks, but Trump’s comments suggest rejection is likely.
Litigation Risk: If blocked, Nippon may sue for damages under trade pacts.
Steel Industry Impact: U.S. Steel’s modernization plans (dependent on Nippon’s investment) could stall.