On Friday, President Donald Trump indicated that concerns regarding national security related to Nippon Steel’s $14.9 billion bid for U.S. Steel could be addressed through specific conditions set by his administration, potentially paving the way for the deal’s approval. Following this news, U.S. Steel’s shares rose by 3.5% in after-hours trading, signaling investor optimism about the deal nearing completion. In an executive order, Trump stated that the national security risks associated with the proposed transaction could be adequately mitigated if the outlined conditions from section 3 of the order are met. However, he did not provide any specific details.
In a mutual announcement, the companies commended Trump and outlined their commitment to invest $11 billion by 2028, along with governance measures, including issuing a “golden share” to the U.S. government, though the extent of control this share would afford is unclear. Earlier in the day, U.S. Steel’s stock dipped when a Nippon Steel executive indicated that the takeover would require a degree of management autonomy, contrasting Trump’s comments about U.S. control through the golden share.
The acquisition plan has faced bipartisan resistance, with both Trump and former President Joe Biden favoring U.S. ownership of the company leading up to the Pennsylvania presidential elections, where U.S. Steel is based. Biden had previously blocked the deal on national security grounds, triggering lawsuits from the companies, which claimed bias in the review process. The Trump administration initiated a new 45-day national security review in April. Confusion surrounded Trump’s stance, as he expressed support for Nippon Steel as a partner but later clarified that final approval was still pending. Both companies have requested litigation pauses to finalize their agreement, with a current acquisition contract expiration set for June 18.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
