WASHINGTON: US President Donald Trump has endorsed a new “partnership” between US Steel and Japan’s Nippon Steel, reversing his previous opposition to the takeover plan. Trump’s support has sent US Steel’s share price soaring, climbing more than 21% after his endorsement.
Trump confirmed that US Steel, headquartered in Pennsylvania, will remain an American company, maintaining its headquarters in Pittsburgh. He emphasized that the partnership would create 70,000 jobs and contribute $14 billion to the US economy. The details of the arrangement remain unclear, but the announcement signals a shift in the ongoing dispute over foreign ownership of the critical steel company.
In December 2023, US Steel and Nippon Steel announced a $14.9 billion merger, which faced significant opposition from unions concerned about foreign control. While Nippon Steel has expressed support for Trump’s leadership and commitment to US workers, the United Steelworkers’ Union remains cautious, citing concerns over potential erosion of domestic steel capacity and job security.
The deal has faced delays, with the Biden administration previously blocking the merger over national security concerns, a move that led to legal challenges. Trump has now called for a review of the transaction by the Committee on Foreign Investment in the United States (CFIUS), tasked with evaluating the security implications of foreign investments in US companies.–AFP
