Trump authorizes merger of US Steel and Nippon Steel

(AFP) President Donald Trump signed an executive order Friday authorizing the merger between two steel giants, U.S. Steel and Japanese rival Nippon Steel, after the companies reached an agreement on American national security guarantees.

The deal ends a long-running saga over ownership of a key national asset since the two industrial groups announced a plan in December 2023 for Nippon Steel to acquire U.S. Steel for $14 billion.

The deal was blocked by former Democratic President Joe Biden during his last days in office, arguing there was a national security issue.

Trump also initially opposed Nippon Steel's plans and urged that U.S. Steel remain American-owned, but on May 23, he expressed support for a "planned partnership" between the two groups.

"US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh," Trump wrote on Truth Social at the time.

In a joint statement, U.S. Steel and Nippon Steel celebrated the decision.

"President Trump has approved the Companies’ historic partnership that will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs," they said.

"In addition to President Trump’s Executive Order approving the partnership, the Companies have entered into a National Security Agreement ('NSA') with the U.S. Government," which provides for new investments of approximately $11 billion through 2028, they detailed.

Trump's executive order does not provide details about the agreement, but reserved the authority to issue other orders, which in his judgment are "necessary to protect the national security of the United States."

Friday's announcement comes after a review by the Committee on Foreign Investment in the United States, which is responsible for analyzing the national security implications of foreign acquisitions of American companies.