President Donald Trump said Friday that U.S. Steel will keep its headquarters in Pittsburgh as part of what he called a “planned partnership” that seemed to signal that he’ll approve a bid by Japan-based Nippon Steel to buy the iconic American steelmaker.
Still, Trump’s statement left it vague as to whether he is approving Nippon Steel’s bid after he vowed repeatedly to block it. But investors seemed to take it as a sign that he would approve it, sharply pushing up U.S. Steel’s shares.
Trump said in a statement that “after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh.”
What Trump called a “planned partnership” will create at least 70,000 jobs and add $14 billion to the U.S. economy, he said, although it wasn’t clear what the terms of the deal would be or who would own U.S. Steel under the arrangement.
Josh Spoores, the Pennsylvania-based head of steel Americas analysis for commodity researcher CRU, said he’s seeing “this ‘partnership’ is a green light for the acquisition.”
The companies didn’t immediately comment. Shares of U.S. Steel jumped 21% on the news, and continued rising in aftermarket trading.
However, U.S. Steel’s CEO David Burritt warned last September that blocking Nippon Steel would mean U.S. Steel would “largely pivot away” and it would raise “serious questions” about remaining headquartered in Pittsburgh.
U. S. Steel’s board and stockholders approved Nippon Steel’s bid last year. It has been opposed by the United Steelworkers union. The union had no immediate comment Friday.
Last month, Trump ordered a new national security review of Nippon Steel’s proposed bid.
