In a dramatic reversal, President Donald Trump announced his support for Nippon Steel’s $14.9 billion takeover of US Steel, hailing it as a job-creating “partnership”—a move that sent US Steel shares rocketing 21% as investors bet the deal will finally close after 18 months of political and legal battles.
Key Developments
✅ Trump’s Endorsement:
- Called the deal a “planned partnership” that will add 70,000 jobs and $14B to the US economy.
- Confirmed $4B for a new steel mill, with most investment within 14 months.
- Plans a Pittsburgh rally next week to celebrate.
📈 Market Reaction:
- US Steel (X.N) surged to 54∗∗—just∗∗54∗∗—just∗∗1 shy of Nippon’s $55/share offer.
- Investors expect a full cash buyout, delisting US Steel.
⚖️ Political Whiplash:
- Biden blocked the deal in January citing national security.
- Trump previously opposed it but flipped after Nippon’s $14B pledge.
- United Steelworkers union remains opposed, but PA Senator McCormick praised it as a “huge victory.”
Why the Sudden Shift?
💡 Investment Sweetener: Nippon’s $14B commitment—including PA jobs guarantees—won over Trump.
🗳️ Election Calculus: Trump’s rally signals he’s claiming credit for saving steel jobs in a key battleground state.
🛑 CFIUS Green Light: The security panel said risks could be mitigated, clearing Trump to approve.
What’s Next?
- Final Closing: Likely within weeks, ending a saga that began in December 2023.
- Union Pushback: Steelworkers may challenge terms, but legal options are limited.
- Global Signal: A rare foreign takeover win amid rising US protectionism.
Trump Backs Nippon Steel’s $14.9B US Steel Takeover, Sparking 21% Stock Surge