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Investors interpreted Trump’s comments to have allowed Nippon Steel for the takeover of US steel.
The President of the United States, Donald Trump, has expressed the support for Nippon Steel’s bid for US steel from $ 14.9 billion and said that her “planned partnership” would create jobs and help the US economy.
The stocks of US steel rose by 21 percent on Friday after Trump’s comments, when the investors interpreted the position of the president about the truth-social social to mean that Nippon Steel had received his approval for his long-planned takeover, the last major hurdle for the deal.
“This will be a planned partnership between the United States Steel and Nippon Steel, which will create at least 70,000 jobs and will add 14 billion US dollars to the US economy,” said Trump on Friday in a post about the social truth.
This week, the Reuters news agency reported that Nippon Steel announced when the merger was approved, it would invest $ 14 billion in the business activity of US Steel, including USD up to $ 4 billion in a new steel mill.
Trump added that the majority of this investment would take place in the next 14 months and said that he would hold a rally at US steel in Pittsburgh next Friday.
Nippon Steel said that Trump’s decision to approve the “partnership” welcomed. The White House did not immediately answer questions about the announcement.
The US steel share price rose after hours and reached $ 54, only shy from Nippon Steels 55 dollar-pro-shares offer price, which was created at the end of 2023. While no details were published, investors explained the trust that the conditions will be similar to those that were agreed in 2023. Investors said that the US steel is no longer acted publicly and that they receive a money distribution for their shares for their shares.
Politically controversial
The deal was one of the best expected on Wall Street, after it had turned into the political arena, with fears that foreign property in Pennsylvania, where the US steel is based, would mean loss of workplace. It took into account the election of the last year in which Trump returned to the White House.
The Senator of Pennsylvania, Dave McCormick, who also described as a “partnership” as a “partnership”, said on Friday that it was a “great victory for America and the US Steel Corporation”, which protect more than 11,000 jobs in Pennsylvania and support the creation of at least 14,000 more.
The last parts of the deal came together surprisingly quickly. The Committee on Foreign Investments in the USA (CFIUS), which reviews deals for national security risks, informed the White House this week that the security risks could be tackled, Reuters reported and published the final decision on Trump’s desk.
After a review of Cfius, the former President Joe Biden blocked the deal in January for national security reasons.
The companies sued and argued that they had not received a fair review process. The bidding White House rejected this view.
The companies argued that bidges rejected the deal when he ran for a re -election to win the support of the United Steelworkers Union in the Pennsylvania battlefield state. The Biden administration had defended the review as essential for the protection of security, infrastructure and supply chains.
Trump initially opposed the deal and argued that the company had to be obsessed and operated in the United States.
The United Steelworkers were only against the deal on Thursday when they asked Trump to block the deal despite Trump’s promise of investment of $ 14 billion.
For investors, including prominent hedge funds, the news means a solution after more than a year of waiting. “Everywhere there were huge high-fives everywhere,” said a recent investor and added: “We understood Donald Trump’s psyche and played them here for our advantage.”
Investors said Trump seemed to have won the ground after the promise for new investments had been increased.
“This deal ensures that steel production will continue to live in Pittsburgh for generations,” said another investor.