President Donald Trump has given his approval for a merger between U.S. Steel and Nippon Steel, which had previously been blocked on national security grounds.
The merger is expected to create approximately 70,000 jobs and contribute $14 billion to the U.S. economy, according to a statement made by Trump on his social media platform, Truth Social.
The big picture: The headquarters of U.S. Steel will remain in Pittsburgh, and most of the investment related to the merger is anticipated to occur over the next 14 months.
- Following Trump’s announcement, U.S. Steel shares experienced a significant increase, surging over 20% to close at $52.01 per share.
Flashback: President Joe Biden had previously prevented Nippon Steel from acquiring U.S. Steel for $14.9 billion in January, citing concerns about national security and potential risks to critical supply chains.
- Despite Biden’s initial block, Trump initiated a new review of the proposed merger in April, instructing the Committee on Foreign Investment in the United States to reevaluate the situation for possible further action.
