US Steel shares plummeted after President Donald Trump announced that Japan’s Nippon Steel will invest heavily in the company, rather than making a purchase. The investment deal was first blocked by former President Joe Biden citing national security concerns in January. Despite this, Nippon had planned to buy US Steel for $55 per share. Now, with Trump’s comments, the company’s shares closed down nearly 6% at $36.98.
Japanese Prime Minister Shigeru Ishiba confirmed that Nippon will provide technology to help US Steel manufacture better quality products in the US. The deal is expected to be mutually beneficial and reciprocal. Cleveland-Cliffs, a rival steel company, has also expressed interest in acquiring US Steel, but its proposed offer would be significantly lower than Nippon’s original bid.
US Steel CEO David Burritt met with Trump at the White House on Thursday, urging him to reconsider his predecessor’s decision. However, it remains unclear how Trump’s comments will impact potential future bids for the company.
Source: https://www.cnbc.com/2025/02/07/trump-says-nippon-will-invest-heavily-in-us-steel-rather-than-purchase-the-company.html