14 Jun 2025, 02:57

Trump Approves Deal Between US Steel and Nippon Steel

Trump supported the deal between US Steel and Nippon Steel to revive steel production in the U.S.
Investments of $11 billion by 2028 and management commitments are key conditions of the deal.
Political disputes surrounding the deal relate to control over US Steel and national security.

This was reported by CNN, NBC News.

Deal Between US Steel and Nippon Steel

U.S. President Donald Trump has approved the partnership between US Steel and Nippon Steel, as indicated by their statement released on Friday, June 13, 2025. The companies expressed hope that their commitments will help revive steel production in America.

National Security and Investments

Trump stated that concerns regarding national security related to Nippon Steel's proposal to acquire US Steel for $14.9 billion could be resolved if certain conditions outlined by his administration are met. Under the deal, the companies committed to investing $11 billion by 2028 and providing management commitments, including issuing a "golden share" for the U.S. government.

Market Reaction

This news positively impacted US Steel's shares, which rose by 3.5% after the market closed. However, earlier on Friday, shares had decreased due to comments from one of Nippon Steel's executives, who noted that the companies would need "a considerable degree of management freedom" for the deal to be successfully completed.

Political Context

The deal between the companies has sparked political disputes, as both Presidents Trump and former President Joe Biden emphasized the importance of keeping US Steel under U.S. control during their campaigns. Biden blocked the deal on national security grounds, leading to lawsuits from the companies.

Prospects of the Deal

Trump noted that the conditions for addressing national security concerns would be outlined in the deal, but specific details have not yet been disclosed. The current agreement between Nippon Steel and US Steel is set to expire on June 18, but the companies may agree to extend it.