Trump OKs US Steel, Nippon 'partnership'

: Metals
25/05/23

US president Donald Trump signaled his approval of a "partnership" between Japanese steelmaker Nippon Steel and US Steel, bringing Nippon's two-year effort to buy the US company to a possible conclusion.

In a social media post today Trump said an agreement between Nippon and US Steel will involve $14bn in investments, the majority of it in the next 14 months, while US Steel will retain its headquarters in Pittsburgh, Pennsylvania.

It is not clear if the "partnership" referred to by Trump is a merger or just an investment, but sources expect the reworded deal to effectively be a buyout of US Steel.

Trump's statement comes after the Committee on Foreign Investment in the US (CFIUS) yesterday concluded its national security review of the deal and tendered a recommendation to Trump. Trump in April called for a review into the deal after saying in February 2024 that he would block it.

Nippon in December 2023 bid $15bn for a takeover of US Steel, a proposal that was largely rebuffed by both politicians and the United Steelworkers (USW) union. Former president Joe Biden in January blocked the deal.

By Marialuisa Rincon

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