President Trump said Friday that U.S. Steel will keep its headquarters in Pittsburgh as part of what he called a “planned partnership” between the iconic American steelmaker and Japan-based Nippon Steel, which has sought to buy it.
Nippon Steel’s nearly $15 billion bid to buy U.S. Steel was blocked by former President Joe Biden. After Mr. Trump became president, it was subject to another national security review by the Committee on Foreign Investment in the United States.
“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the president wrote on Truth Social. “For many years, the name, ‘United States Steel’ was synonymous with Greatness, and now, it will be again. This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy.”
Shares of U.S. Steel jumped 21% on the news, and continued rising in aftermarket trading.
The president also said he’ll hold a “BIG Rally” at U.S. Steel in Pittsburgh on Friday, May 30.
The White House didn’t immediately offer further clarification, and it was unclear would own U.S. Steel under the arrangement.
U.S. Steel did not immediately respond to a request for comment.
Nippon Steel said in a statement that it “applauds President Trump for his bold action to approve our partnership with U. S. Steel,” but did not provide additional details about the terms of the deal.
“We share the Trump administration’s commitment to protecting American workers, the American steel industry, and America’s national security,” Nippon Steel said, calling the agreement “a game changer — for U.S. Steel and all of its stakeholders, including the American steel industry.”
Mr. Trump has levied 25% tariffs on all foreign steel imports in an effort to keep industry players in the U.S.
Nippon Steel’s bid to buy U.S. Steel
Nippon Steel’s bid to buy the U.S. company had always included plans to keep its headquarters. To sweeten the deal, Nippon Steel had offered up a $2.7 billion commitment to upgrade facilities in Pennsylvania and Indiana on top of an earlier commitment to spend $1.4 billion.
U.S. Steel’s CEO David Burritt warned last September that if the deal were blocked, U.S. Steel would “largely pivot away” and it would raise “serious questions” about remaining headquartered in Pittsburgh.
U. S. Steel’s board and stockholders approved Nippon Steel’s bid last year. It has been opposed by the United Steelworkers union. The union had no immediate comment Friday.
During the campaign, Mr. Trump said he opposed the deal, and before taking office he reiterated he was “totally against the once great and powerful U.S. Steel being bought by a foreign company.”
Then-President Biden also opposed the deal, and after months of review he made a decision in early January to block it. The two companies filed lawsuits in response.
Then in February, Mr. Trump suggested that Nippon Steel wouldn’t buy U.S. Steel, as it had planned, but that it would instead invest in U.S. Steel.
Nippon Steel’s president said turning U.S. Steel into a wholly-owned subsidiary was the starting point of negotiations, according to recent reporting from Nikkei Asia, which said the companies also discussed various other proposals.
“U.S. Steel is a very special company. We don’t want it to go to Japan or any other place, so we’re working with them. I don’t know if they need any money now, I’ll be honest with you. They’ve hit gold,” Mr. Trump said at the White House last month.
