Shares in US Steel soar 21% as investors see green light for politically fraught takeover
Donald Trump has thrown his support behind a long-contested US$14.9bn deal between Nippon Steel and US Steel, in a dramatic reversal of his previous position opposing the Japanese company’s takeover bid.
Announcing what he called a “planned partnership” on his social media platform Truth Social on Friday, the president claimed the agreement would generate 70,000 jobs and inject US$14bn into the US economy—most of it within the next 14 months.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add US$14 billion to the U.S. Economy,” Trump posted. “The bulk of that Investment will occur in the next 14 months.”
The announcement sent shares of US Steel soaring 21% on Friday, closing just below Nippon’s US$55-per-share offer price from late 2023. Investors interpreted Trump’s message as an effective green light for the deal, which had been stalled by political opposition and a national security review.
From opposition to endorsement
Trump’s support marks a significant U-turn. As recently as December, he declared himself “totally against” Nippon’s bid and vowed to block it if elected. “Buyer beware!” he wrote at the time. By April, however, his language had softened to a more measured emphasis on keeping US Steel’s operations within the country.
Friday’s post signals a full pivot. Trump stressed that US Steel’s headquarters would remain in Pittsburgh and pledged to hold a “big rally” at the company’s facility there next week—an event likely aimed at reinforcing his campaign presence in Pennsylvania, a crucial swing state.
Nippon Steel responded by applauding Trump’s announcement, calling it a positive step toward completing the deal. The White House did not immediately comment.
Political battleground
The acquisition has become one of the most politically charged corporate takeovers in recent years. The Biden administration blocked the deal in January, citing national security concerns raised during a review by the Committee on Foreign Investment in the United States (CFIUS). That decision drew praise from the United Steelworkers union, which accused Nippon of offering “flashy promises” while aiming to “undercut our domestic industry from the inside.”
However, this week Reuters reported that CFIUS had informed the White House that the security risks could be mitigated—effectively shifting the final decision to Trump.
Pennsylvania Senator Dave McCormick welcomed the president’s announcement, calling it “a huge victory for America and the US Steel Corporation.” He said the partnership would protect over 11,000 jobs in Pennsylvania and help create at least 14,000 more.
Hedge funds cheer clarity
For Wall Street, Trump’s pivot represents a long-awaited resolution. Investors, including prominent hedge funds, had bet on the eventual approval of the deal despite its political turbulence.
Nippon has pledged to invest up to US$4bn in a new steel mill as part of its broader US$14bn commitment. If completed, the acquisition would see US Steel delist from public markets, with shareholders receiving a cash payout.
Final hurdles
While many interpret Trump’s post as the final hurdle cleared, formal regulatory and logistical steps remain before the transaction closes. No amended terms have been disclosed, but investors broadly expect the structure to resemble the 2023 agreement.
Trump’s shift is not without political cost. The United Steelworkers union remains opposed and had urged him as recently as Thursday to block the transaction. Trump’s alignment with Nippon, despite union objections, may test support among the working-class base that helped fuel his political rise.
Still, Trump and his allies are likely to tout the deal as proof of his pro-growth, pro-jobs agenda—particularly in electorally critical Rust Belt states.
