Japan’s Nippon Steel is expected to acquire U.S. Steel for $55 per share, sources familiar with the matter told CNBC’s David Faber.
President Donald Trump cleared Nippon’s bid for U.S. Steel on Friday, referring to the deal as a “partnership.” Trump said Nippon will invest $14 billion of investment over the next 14 months. U.S. Steel’s headquarters will remain in Pittsburgh, the president said.
U.S. Steel shares were up more than 1% on Tuesday.
President Joe Biden had blocked Nippon’s bid for U.S. Steel on national security grounds, arguing that the deal will potentially jeopardize critical supply chains. But Trump ordered a new review of the proposed acquisition in April, despite his previous opposition to Nippon acquiring U.S. Steel.
Trump told reporters on Sunday that the deal is an “investment, it’s a partial ownership, but it will be controlled by the USA.” Pennsylvania Senator Dave McCormick told CNBC on Tuesday that U.S. Steel will have an American CEO and a majority of its board members will be from the U.S.
“It’s a national security agreement that will be signed with the U.S. government,” McCormick said. “There’ll be a golden share that will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren’t cut.”
This is a developing story. Please check back for updates.
