President Trump Approves US Steel, Nippon Steel Partnership

President Donald Trump announced on Friday that United States Steel Corp. X and Nippon Steel will enter a partnership, following the Japanese company’s blocked acquisition attempt due to security concerns.

The Details: Trump revealed on Truth Social that the collaboration is projected to generate 70,000 jobs and inject $14 billion into the U.S. economy. The headquarters of U.S. Steel will stay in Pittsburgh, with most investments occurring in the next 14 months, according to CNBC.

Following the announcement, U.S. Steel’s stock soared over 20%, closing at $52.17 per share.

Earlier this year, President Joe Biden blocked Nippon Steel’s $14.9 billion acquisition of U.S. Steel, citing risks to critical supply chains.

In April, Trump initiated a new review of the acquisition, instructing the Committee on Foreign Investment in the United States to assess the situation further.

Why It Matters: The partnership between U.S. Steel and Nippon Steel marks a significant shift in the U.S. steel industry landscape. The alliance is poised to bolster the domestic steel sector and enhance economic growth.

The decision to keep U.S. Steel’s headquarters in Pittsburgh underscores Trump’s commitment to maintaining a strong industrial presence in the region.

See Also: Trump’s ‘Big, Beautiful’ Bill Strips Key Retirement Benefits From Federal Workers In Razor-Thin House Vote

Furthermore, the partnership reflects a strategic move to balance national security concerns with economic interests. President Biden’s initial block on the acquisition highlighted the importance of safeguarding critical supply chains.

However, Trump’s decision to approve the partnership suggests a willingness to explore alternative avenues for collaboration that align with national security priorities.

In the lead-up to this decision, Nippon Steel pledged $14 billion to U.S. Steel’s operations, including up to $4 billion for a new steel mill as part of its efforts to secure approval from the Trump administration for its acquisition bid.

X Price Action: According to data from Benzinga Pro, United States Steel shares ended Friday’s session up 21.6% at $52.17 and continued to climb in extended trading.

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