Trump clears Nippon merger with US Steel

On September 4, 2024, a water tower at the U.S. Steel Corp. Edgar Thomson Works steel mill in Braddock, Pennsylvania is shown in a photograph by Justin Merriman of Bloomberg.

President Donald Trump has approved the merger of U.S. Steel and Nippon Steel, after the Japanese steelmaker’s initial attempt to acquire its U.S. counterpart was blocked due to national security concerns. Trump announced on his social media platform, Truth Social, that this partnership will generate 70,000 jobs and contribute $14 billion to the U.S. economy. The majority of the investment is expected to occur within the next 14 months, with U.S. Steel maintaining its headquarters in Pittsburgh. Following Trump’s announcement, U.S. Steel shares rose over 20% to $52.01 per share.

In January, President Joe Biden prevented Nippon Steel from acquiring U.S. Steel for $14.9 billion, citing national security risks related to critical supply chains. However, in April, Trump initiated a new evaluation of the proposed merger by directing the Committee on Foreign Investment in the United States to reassess the situation and consider potential actions.

Trump has announced plans to hold a rally at U.S. Steel in Pittsburgh on May 30.