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U.S. President Donald Trump approved the merger of United States Steel Corporation (NYSE:X) and Nippon Steel on May 23, following the blocking of the Japanese steelmaker's prior attempt to purchase its U.S. rival on national security grounds.
Back in January, former President Joe Biden cited national security concerns to prevent Nippon Steel from paying $14.9 billion to acquire U.S. Steel, stating that the acquisition would raise concerns for vital U.S. supply chains. However, in April, Donald Trump directed the Committee on Foreign Investment in the United States to determine "whether further action in this matter may be appropriate" and ordered a new review of the proposed acquisition.
In a post on his social media platform, Truth Social, the President gave his remarks regarding the merger:
“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.
The President stated that the majority of the investment will occur over the next 14 months and that U.S. Steel's headquarters will continue to be located in Pittsburgh. Donald Trump's post on Truth Social caused shares of U.S. Steel to jump 21% after investors interpreted it as indicating that Nippon Steel had obtained his approval for its long-planned takeover.
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