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Nippon expected to buy US Steel at $55/share - CNBC
ByAinvest
Tuesday, May 27, 2025 10:15 am ET1min read
Nippon expected to buy US Steel at $55/share - CNBC
Nippon Steel, Japan's top steelmaker, is expected to buy United States Steel (US Steel) at a price of $55 per share, according to recent reports. This potential acquisition comes after months of negotiations and two rounds of national security reviews by the Committee on Foreign Investment in the United States (CFIUS).The deal, valued at approximately $14.9 billion, has received significant attention due to its potential economic and industrial implications. President Donald Trump has expressed support for the acquisition, stating that it will create at least 70,000 jobs and add $14 billion to the U.S. economy [1]. Trump also emphasized that US Steel's headquarters will remain in Pittsburgh, underscoring his commitment to preserving American industrial roots.
The market has responded favorably to the news, with US Steel shares surging more than 20% to close at $52.01 per share following Trump's announcement [2]. This positive market reaction reflects investor optimism about the potential benefits of the acquisition, including increased competitiveness and growth potential in the U.S. steel market.
Nippon Steel is considering offering a golden share to the U.S. government as part of the deal, which would give Washington the power to veto important management matters [3]. This move is aimed at addressing lingering national security concerns and facilitating the acquisition.
The expected acquisition of US Steel by Nippon Steel highlights a growing trend of international partnerships boosting national economies. The deal could reshape the global steel production landscape, fostering US-Japan cooperation while tackling wider economic issues. As countries consider similar ventures, the long-term effects on trade relationships and industrial growth will be key.
References:
[1] https://finimize.com/content/trump-approves-us-steels-acquisition-by-nippon-steel
[2] https://www.cnbc.com/2025/05/23/trump-greenlights-nippon-merger-with-us-steel.html
[3] https://www.businesstimes.com.sg/companies-markets/energy-commodities/nippon-steel-could-offer-washington-golden-share-seal-us-steel-deal-nikkei-reports
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