Trump shows approval for Nippon Steel’s bid for US Steel, blesses ‘planned partnership’
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A United Steelworkers sign seen outside the Great Lakes Works United States Steel plant in River Rouge, Michigan.
PHOTO: REUTERS
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WASHINGTON - US President Donald Trump appeared to give his approval to Nippon Steel’s US$14.9 billion (S$19 billion) bid for US Steel on May 23, saying the “planned partnership” between the two would create jobs and help the American economy.
Shares of US Steel soared 21 per cent as investors interpreted the post on Truth Social to mean Nippon Steel’s takeover of US Steel was nearing completion, having cleared the last major hurdle with Mr Trump’s apparent approval. “This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add US$14 Billion Dollars to the US Economy,” Mr Trump said in a post on Truth Social.
Mr Trump added that the bulk of that investment would occur in the next 14 months and said he would hold a rally at US Steel in Pittsburgh on May 30.
The two companies did not immediately respond to a request for comment. The White House did not immediately reply to questions about the announcement.
Pennsylvania Senator Dave McCormick, who also called the deal a “partnership”, said it was a “huge victory for America and the US Steel Corporation”, that will protect more than 11,000 Pennsylvania jobs, and support the creation of at least 14,000 more.
The Committee on Foreign Investment in the US, which reviews deals for national security risks, told the White House earlier this week that the security risks posed by the deal can be addressed, Reuters reported, moving the final decision on the merger to Mr Trump’s desk.
Reuters had reported this week that if the merger is approved, Nippon Steel has said it would invest US$14 billion
Talks with the US government about the merger were in the final stages, Nippon Steel’s president Tadashi Imai told reporters in Tokyo earlier this week, declining to provide details but saying the company is awaiting Mr Trump’s decision.
Following an earlier CFIUS-led review, former president Joe Biden blocked the deal in January on national security grounds.
The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view. REUTERS
