President Trump announced on Friday that U.S. Steel’s headquarters will remain in Pittsburgh as part of a “planned partnership” between the iconic American steelmaker and Japan-based Nippon Steel, which has expressed interest in acquiring it.
Former President Joe Biden blocked Nippon Steel’s nearly $15 billion bid to buy United States Steel. After President Trump took office, the Committee on Foreign Investment in the United States conducted another national security review.
“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the president wrote in a posting to Truth Social. “For many years, the name ‘United States Steel’ was synonymous with greatness; now it will be again. This is a planned partnership between United States Steel and Nippon Steel that will create at least 70,000 jobs and add $14 billion to the US economy.
U.S. Steel’s stock jumped 21% on the news and continued to rise in after-market trading.
The president also announced a “BIG Rally” at U.S. Steel in Pittsburgh on Friday, May 30.
The White House did not immediately provide additional clarification, and it was unclear who would own U.S. Steel under the agreement.
U.S. Steel praised Mr. Trump on Friday, saying in a statement, “President Trump is a bold leader and businessman who knows how to get the best deal for America, American workers, and American manufacturing.”
“U. S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years,” the business’s spokesperson stated. “U. S. Steel greatly appreciates President Trump’s leadership and personal attention to the futures of thousands of steelworkers and our iconic company.”
Nippon Steel said in a statement that it “applauds President Trump for his bold action to approve our partnership with U.S. Steel,” but did not elaborate on the terms of the agreement.
“We share the Trump administration’s commitment to protecting American workers, the American steel industry, and America’s national security,” Nippon Steel said. It called the contract “a game changer — for U.S. Steel and all of its stakeholders, including the American steel industry.”
Mr. Trump imposed 25% tariffs on all foreign steel imports in an effort to keep industry players in the United States.
Nippon Steel’s bid to buy U.S. Steel
Nippon Steel’s bid to acquire the US company had always included plans to retain its headquarters. To sweeten the deal, Nippon Steel offered a $2.7 billion commitment to upgrade facilities in Pennsylvania and Indiana, in addition to an earlier commitment of $1.4 billion.
Last September, U.S. Steel CEO David Burritt warned that if the transaction was blocked, the company would “largely pivot away” and raise “serious questions” about remaining headquartered in Pittsburgh.
Last year, U.S. Steel’s board of directors and stockholders approved Nippon Steel’s bid. The United Steelworkers union has expressed its opposition. The union had no immediate response Friday.
During the campaign, Mr. Trump stated his opposition to the deal, and before taking office, he reiterated that he was “totally against the once great and powerful U.S. Steel being bought by a foreign company.”
Then-President Biden was also opposed to the deal, and after months of consideration, he decided to block it in early January. In response, both companies filed lawsuits.
Then, in February, Mr. Trump suggested that Nippon Steel invest in U.S. Steel rather than buy it, as planned.
According to recent Nikkei Asia reporting, Nippon Steel’s president stated that making U.S. Steel a wholly-owned subsidiary was the starting point of negotiations. The companies also discussed a variety of other proposals.
“U.S. Steel is a very unique company. We don’t want it to go to Japan or anywhere else, so we’re collaborating with them. I don’t know if they need money right now, to be honest. “They’ve hit gold,” Mr. Trump declared at the White House last month.