President Donald Trump endorsed Nippon Steel's long-running effort to buy U.S. Steel, announcing on social media that the companies are partnering to "create at least 70,000 jobs and add $14 billion to the U.S. economy."
Way back in December 2023, Nippon won a bidding war for U.S. Steel, offering $55 in cash per share of X stock, or $14.9 billion, including assumed debt. That deal ran into union opposition and got shelved by then-President Joe Biden with Pennsylvania a key swing state in the 2024 election.
U.S. Steel Stock Jumps
Trump said that the steel tariffs he has imposed "will ensure that Steel will once again be, forever, MADE IN AMERICA." He added that he'll travel to Pittsburgh next Friday for a big rally at U.S. Steel.
The Wall Street Journal reported earlier Friday that Nippon Steel had pledged to build a brand-new mill and double its spending plan to win Washington's support. Investors apparently see the prospect of extra steelmaking capacity and a financially stronger U.S. Steel as a negative for the rest of the industry.
U.S. Steel leaped 21.2% to 52.01. Cleveland-Cliffs, which had sought to buy U.S. Steel, tumbled 7%. Steel Dynamics fell 3.5%, and Nucor 2%.
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