Trump supports Nippon Steel's $14.9 billion bid for U.S. Steel, shares rise 21%

From Yahoo Finance: 2025-05-23 15:47:00

U.S. President Donald Trump supports Nippon Steel’s $14.9 billion bid for U.S. Steel, aiming to create jobs and boost the American economy. Shares of U.S. Steel rise 21% as investors interpret Trump’s approval for the takeover. Nippon Steel plans to invest $14 billion in U.S. Steel, including $4 billion in a new steel mill.

The partnership between United States Steel and Nippon Steel is set to create 70,000 jobs and add $14 billion to the U.S. Economy. Nippon Steel intends to invest in U.S. Steel’s operations, with a significant portion of the investment coming in the next 14 months. U.S. Steel is set to grow through this partnership.

The merger between Nippon Steel and U.S. Steel will boost production to 86 million metric tons, making it the world’s third-largest steel producer. U.S. Steel’s stock rises after hours, nearing the $55 per share offered by Nippon Steel. The deal is crucial for Nippon Steel’s global expansion strategy amid declining domestic demand.

The long-anticipated deal between Nippon Steel and U.S. Steel is seen as a victory for America, protecting thousands of jobs in Pennsylvania. The final pieces of the deal came together quickly after the Committee on Foreign Investment in the U.S. addressed security risks. The companies had previously faced opposition from the Biden administration.

Investors, including hedge funds, express relief after the deal’s approval, following over a year of uncertainty. The pledge for new investments has increased investor confidence. The deal ensures the continuation of steelmaking in Pittsburgh for generations, marking a significant milestone for the industry.



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