US President Donald Trump has announced via his social media account that he has cleared the planned merger between US Steel and the Japanese steelmaker Nippon Steel, stating that the two companies will form a partnership. This decision follows a new review of the takeover bid conducted by the Committee on Foreign Investment in the United States (CFIUS).
The deal will ensure that US Steel’s headquarters remain in Pittsburgh, will create at least 70,000 jobs and will inject $14 billion into the US economy, most of which will be realized within the next 14 months.
Meanwhile, US Steel has applauded Trump’s decision, stating that the partnership with Nippon Steel will enable it to grow and become stronger, bringing massive investment, new technologies and thousands of jobs over the next four years.
In December 2023, Nippon Steel had announced its intention to acquire US Steel for $14.9 billion, though the deal faced a backlash from former US President Joe Biden. Biden’s move to block the deal after the first CFIUS review led to two lawsuits being launched by the companies in January this year, accusing the former president of ignoring the rule of law to please the United Steelworkers (USW) union and to support his political agenda, and of influencing CFIUS to advance his political agenda, which resulted in a biased process depriving Nippon Steel and US Steel of their rightful opportunity for fair consideration. After taking office, Trump gave the deal a second chance by ordering CFIUS to conduct a new review of the acquisition bid.