Nippon Steel Acquisition Deal Expected to Get Approval; Trump Emphasizes: US Still Holds Control Over U.S. Steel

On Sunday, Eastern Time, US President Donald Trump stated that the US would still maintain control over US Steel as part of its cooperation with Japan's Nippon Steel Corporation in the latter's acquisition plan.

Last Friday, Trump suddenly made a public statement in support of Nippon Steel's $14.9 billion deal to acquire US Steel. This immediately ignited enthusiasm in the capital markets.

US Steel's stock price surged by 21% last Friday, and after the Tokyo stock market opened on Monday, Nippon Steel's stock price also soared by 5% at one point, reaching 3,030 yen per share, becoming one of the biggest gainers among the Nikkei 225 Index components.

However, on Sunday, Eastern Time, when asked about more details of the agreement, Trump added and emphasized: "It (US Steel) will be controlled by the US, otherwise I wouldn't have agreed to the deal."

As part of the deal announced last Friday, Nippon Steel plans to invest $14 billion in US Steel's operations, including up to $4 billion in a new steel mill. Trump had stated last Friday that the merger would create 70,000 jobs.

Trump made this statement to reporters while traveling from New Jersey to Washington over the weekend. He revealed that relevant members of Congress had previously urged him to reach an agreement.

"This is an investment, about partial ownership (of US Steel), but it will still be controlled by the US," he emphasized.

Nippon Steel is currently the world's fourth-largest steel producer. Data from the World Steel Association shows that, in terms of production, this merger will create the world's third-largest steel producer, second only to China's Baowu Steel Group and Luxembourg-based ArcelorMittal.

Although details of the acquisition agreement have not yet been disclosed, investors have expressed confidence that the terms of the agreement will be similar to those reached in 2023. Investors expect that US Steel will eventually be delisted, and its shareholders will receive cash payments.

This deal has been one of the most anticipated on Wall Street. Previously, due to concerns that a foreign acquisition would mean a reduction in jobs in Pennsylvania, where US Steel's headquarters is located, the deal had been controversial in US political circles.

It is worth noting that despite Trump's public endorsement, the deal still needs to pass the national security review by the Committee on Foreign Investment in the United States (CFIUS).