Steel industry "Partnership" between US Steel and Nippon Steel
After months of uncertainty, US President Donald Trump has held out the prospect of a "partnership" between the American steel company US Steel and its Japanese rival Nippon Steel. What exactly he meant by this remained unclear.
24.05.2025, 00:24
SDA
The wording initially left open whether Trump would approve the takeover of the US group sought by Nippon - or just an acquisition. However, US Steel's shares left US trading with a plus of a good 21 percent.
Trump wrote on his online platform Truth Social that US Steel would "stay in America" and keep its headquarters in Pittsburgh. The "planned partnership" will create at least 70,000 jobs in the USA and contribute 14 billion dollars to US economic output.
US Steel produces steel for the automotive and construction industries, among others.
Blockade by Biden
Trump's predecessor Joe Biden had blocked the takeover by Nippon Steel in January shortly before his term of office expired. Trump had also previously spoken out against US Steel coming into foreign hands. In April, he ordered a new review of the deal by the Cfius agency, which examines foreign investment in the USA. The investigation was completed this week.
The Wall Street Journal wrote on Friday morning that Nippon had recently increased its investment commitments in the USA to eleven billion dollars in the event of a takeover. With a new plant, they could also reach 14 billion dollars, it said, citing informed persons. Trump also tried to persuade Nippon Steel to make a large investment in US Steel, in which they would not acquire a majority stake in their American rival.
The influential steelworkers' union categorically opposed a takeover by Nippon Steel until the very end. It accuses the Japanese company of having competed unfairly for years with steel that was too cheap.
