Trump Approves Nippon's $14.9B Deal For US Steel Deal — But Retail Sentiment Stays Bearish
Synopsis
The companies have also signed a National Security Agreement with the U.S. Government, committing to around $11 billion in new investments by 2028
Trump Approves Nippon's $14.9B Deal For US Steel Deal — But Retail Sentiment Stays Bearish
U.S President Donald Trump approved Nippon Steel’s bid for U.S. Steel (X) worth $14.9 billion on Friday.
Although U.S. Steel shares ended Friday down 2.8%, the news triggered a 5.1% rebound in aftermarket trading, pushing the stock up to $54.85.
The companies have also signed a National Security Agreement (NSA) with the U.S. Government, committing to around $11 billion in new investments by 2028. The NSA includes an initial investment in a greenfield project expected to be completed after 2028.
The agreement also outlines commitments related to governance, domestic production, and trade, including the issuance of a Golden Share to the U.S. Government, which grants it special voting rights in certain situations. However, neither company disclosed further details regarding the Golden Share.
Last month, Republican Senator David McCormick of Pennsylvania indicated that the U.S. would likely hold veto powers over key decisions at the 124-year-old firm.
White House trade adviser Peter Navarro echoed the sentiment, “U.S. Steel owns the company. Nippon Steel is going to have some involvement but no control.”
The deal will mark the conclusion of a turbulent 18-month period for Nippon Steel in its bid to acquire the American company, a process marked by multiple challenges, including union resistance and two national security reviews.
Alongside President Trump’s Executive Order, the companies have also completed the U.S. Department of Justice review process.
Retail sentiment on Stocktwits remained ‘bearish’ with users apprehensive about the deal's conclusion.
One user said that the stock is overpriced and could fall to $30 levels.
Year-to-date, the stock has gained around 53% as of Friday’s close.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.