Trump approves partnership between US Steel and Nippon Steel
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| US Steel Vs Nippon Steel |
US President Donald Trump issued an executive order on Friday approving the merger of US Steel and Japan's Nippon Steel, following the signing of a national security agreement between the two companies and the US government. The US company's shares rose 5.04% in overnight trading.
Trump opposed the controversial sale of US Steel to Nippon Steel in the run-up to the 2024 presidential election, as both Republicans and Democrats favored protecting American companies from foreign competitors.
However, Trump began to soften his opposition to the acquisition after taking office, ordering a review of the deal in April. President Joe Biden had blocked the sale of US Steel to Nippon Steel during his final days in office, citing national security concerns, despite Japan being a close ally.
In December 2023, Nippon Steel made a bid of approximately $15 billion to acquire U.S. Steel, sparking a political crisis that dominated the 2024 presidential campaign. The Pittsburgh-based steel company was a key issue in defining the political identity of the swing state of Pennsylvania.
On October 6, 2024, an arbitration panel approved Nippon Steel's acquisition of U.S. Steel, despite objections from the steelworkers' union and President Joe Biden. The U.S. Investment Committee subsequently rejected the bid, making its decision binding on the president.