Key Takeaways
- President Trump gave the green light to a “partnership” between U.S. Steel and Nippon Steel in a Truth Social post on Friday. Shares of U.S. Steel surged following the president’s post.
- A $14.1 billion merger between the steelmakers was blocked by the Biden administration in January due to national security concerns.
- Last month, Trump said he didn’t want U.S. Steel to be bought by a foreign corporation.
United States Steel (X) shares popped Friday after President Donald Trump said the company will partner with Japan’s Nippon Steel, seemingly ending a long-running will-they-won’t-they deal drama.
“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” Trump said on Truth Social. “This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy.”
U.S. Steel did not immediately respond to Investopedia’s request for comment.
Shares of US Steel jumped 21% Friday. The stock is up more than 50% so far in 2025. Shares of Cleveland-Cliffs (CLF), which had sought to acquire US Steel instead, fell on the news, finishing the day down about 7%.
The president last month ordered a review of Nippon Steel’s proposed takeover bid of U.S. Steel, saying he didn’t want to see the company purchased by a foreign entity.
The $14.1 billion merger between the two steelmakers was originally blocked by the Biden administration in early January due to national security concerns. The companies had sued the U.S. government to challenge the decision.
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