US Steel Soars 21% After Nippon Merger Approval: Shares of US Steel skyrocketed by 21% on Friday after President Donald Trump announced his approval of a long-debated partnership with Japan’s Nippon Steel, signaling a dramatic turnaround for the iconic American steelmaker. The move comes after months of uncertainty and political wrangling, with the merger previously blocked by the Biden administration over national security concerns.
A Game-Changing Deal
Trump’s endorsement, delivered via social media, described the deal as a “planned partnership” that would keep US Steel’s headquarters in Pittsburgh and ensure the company remains American-owned. The president highlighted the economic impact, projecting that the partnership would inject $14 billion into the US economy and create at least 70,000 jobs.
“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…This will be a planned partnership…which will create at least 70,000 jobs, and add $14 Billion Dollars to the US Economy.”
— President Donald Trump
Investor Euphoria
The market responded swiftly. US Steel’s stock surged more than 20%, closing at $52.01 per share—just shy of Nippon’s $55 per share offer price. This jump marks an over 50% increase in US Steel’s share price year-to-date, reflecting renewed investor optimism after a period of intense uncertainty.
What Changed?
Earlier this year, the Biden administration had blocked Nippon Steel’s $14.9 billion bid, citing national security risks and the importance of keeping critical supply chains under US control. Trump’s administration, however, reopened the review and ultimately gave the green light, with assurances that US Steel would remain headquartered in Pittsburgh and that Nippon Steel would make substantial investments in American facilities.
Nippon Steel has committed to investing up to $14 billion in US operations, including building a new mill and upgrading existing blast furnaces, while pledging not to conduct layoffs or plant closures during the term of the current labor agreement.
What’s Next?
While Trump’s announcement has been welcomed by both companies and cheered by investors, some details about the structure of the partnership remain unclear—including the precise ownership split and long-term governance. Still, industry analysts view the approval as a strong signal that the merger will proceed, potentially transforming US Steel’s competitiveness and technological capabilities.
For now, the market has spoken—and it likes what it sees. US Steel’s leap signals renewed confidence in the company’s future and in the broader vision of a revitalized American steel industry, powered by global collaboration and fresh investment
Why did Trump’s support cause US Steel shares to jump 21 percent
US Steel shares surged 21% after Donald Trump publicly signaled his support for a merger between US Steel and Japan’s Nippon Steel, which investors interpreted as the final major hurdle being cleared for the $14.9 billion deal to proceed. This sharp jump was driven by several key factors:
Perceived Regulatory Green Light: Trump’s announcement was seen as a clear indication that the merger, previously blocked on national security grounds, would now receive government approval. This removed a significant layer of uncertainty that had been weighing on the stock, making investors more confident that the deal would close soon.
Premium Buyout Offer: Nippon Steel’s bid values US Steel at $55 per share, a premium to its pre-announcement trading price. With Trump’s support, investors anticipated that the deal would go through at this higher price, prompting a rush to buy shares and driving up the stock price
Economic and Job Creation Promises: Trump’s statement emphasized that the partnership would keep US Steel’s headquarters in Pittsburgh, create at least 70,000 jobs, and add $14 billion to the US economy. These reassurances about local investment and job security further boosted investor sentiment
Market Relief: The approval signaled stability and a positive outlook for US Steel’s future, especially after months of political and regulatory uncertainty. Investors responded enthusiastically, bidding up the stock in anticipation of the merger’s benefits and the premium payout
Also check our recent post on BITCOIN https://olaelectricmobility.com/is-bitcoin-ready-to-hit-a-new-high/