US President Donald Trump has extended his support to Nippon Steel’s $14.9 billion bid to acquire US Steel, terming it a ”planned partnership” that could push $14 billion into the American economy and create at least 70,000 jobs. Trump’s announcement of the deal on Truth Social sent US Steel shares rising by 21%, and after-hours trading pushed the stock near the $55 per share offer price. Trump also declared to conduct a rally at US Steel’s Pittsburgh facility on Friday.

US President calls it the largest investment in the history of Pennsylvania

In his social media post, Trump stated, ”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 Pittsburg…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 US Economy.”

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Meanwhile, Nippon Steel welcomed Trump’s approval while the White House declined to give any reaction to it. The Japanese company had earlier committed for 4$ billion to $14 billion investment for constructing a new building and a new mill if the acquisition gains final authorization.

Nippon Steel bid for US Steel

The takeover had been stuck in a political tug-of-war because of concerns related to foreign control and its potential impact on US jobs, especially in Pennsylvania, which is a major swing state. Trump had earlier slammed the deal but changed his opinion after Nippon Steel expanded its investment pledge. Pennsylvania Senator Dave McCormick termed the decision a ”huge victory for America,” stating that over 11,000 jobs in the state would be protected and around 14,000 new roles would be generated.

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The Committee on Foreign Investment in the US (CFIUS), which assesses deals for national security threats, conveyed to the White House this week that the merger’s concerns could be reduced, effectively moving the call to Trump. The change comes a month after former US President Joe Biden had blocked the deal, citing national security risks. The Biden administration defended that their decision was aimed at safeguarding US infrastructure and supply chains. On the other hand, critics blamed Biden for serving the Union Steelworkers union for gaining political support.

By receiving Trump’s approval, investors expressed optimism. Prominent hedge funds that were waiting for a long time for resolution welcomed the decision. ”There were huge high-fives all around today,” stated one investor. ”We understood Donald Trump’s psyche and we played it to our advantage.” Another pointed out, ‘’This deal ensures that steelmaking will live in Pittsburgh for generations.’’

(With inputs from Reuters)