U.S. President Donald Trump has publicly backed Nippon Steel’s $14.9 billion bid [1] for U.S. Steel, but key uncertainties remain regarding the scope and structure of the deal. Trump’s comments, made via Truth Social, described a “planned partnership” between the two companies, promising the creation of at least 70,000 jobs and a $14 billion boost to the U.S. economy.
Despite Trump’s endorsement, the specifics of the agreement remain unclear. While he asserted that the United States would retain control over U.S. Steel, it is uncertain whether this refers to a full acquisition or a partial investment by Nippon Steel. The White House has not provided further clarification on the matter.
Following Trump’s remarks, U.S. Steel’s stock surged 21% to $52.01, reflecting investor optimism that the deal had overcome its final hurdle. However, shares remain below Nippon Steel’s offer price of $55 per share, signaling lingering doubts about the transaction’s completion.
For Nippon Steel, Japan’s largest steelmaker, the acquisition is a strategic move to expand its global footprint. The deal would increase its production capacity from 63 million metric tons to 86 million metric tons, allowing it to tap into the growing U.S. market amid declining domestic demand. Analysts have noted that while the expansion presents significant opportunities, concerns over the financial burden of the acquisition persist.
The merger, if finalized, would create the world’s third-largest steel producer by volume, trailing only China’s Baowu Steel Group and Luxembourg-based ArcelorMittal. However, political and regulatory scrutiny could still pose challenges, particularly given past opposition to foreign ownership of U.S. Steel.
Trump’s endorsement marks a pivotal moment in the ongoing negotiations, but until further details emerge, questions surrounding the deal’s structure and long-term implications remain unanswered.
Sources:
[1] Trump’s backing for Nippon’s US Steel bid leaves key questions unanswered https://www.reuters.com/business/nippon-steel-shares-climb-5-after-trump-offers-support-us-steel-deal-2025-05-26/