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President Trump says US Steel will keep HQ in Pittsburgh, a sign he'll approve bid by Japan-based Nippon

PITTSBURGH, PENNSYLVANIA - MARCH 20: A general view of the exterior of the U.S. Steel Tower, headquarters of USX Steel, on March 20, 2024 in Pittsburgh, Pennsylvania. Nippon Steel has said that it would relocate its U.S. headquarters from Houston to Pittsburgh, where U.S. Steel (X.N) is located, if their acquisition deal goes through. (Photo by Jeff Swensen/Getty Images)
Jeff Swensen
PITTSBURGH, PENNSYLVANIA - MARCH 20: A general view of the exterior of the U.S. Steel Tower, headquarters of USX Steel, on March 20, 2024 in Pittsburgh, Pennsylvania. Nippon Steel has said that it would relocate its U.S. headquarters from Houston to Pittsburgh, where U.S. Steel (X.N) is located, if their acquisition deal goes through. (Photo by Jeff Swensen/Getty Images)
SOURCE: Jeff Swensen
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President Trump says US Steel will keep HQ in Pittsburgh, a sign he'll approve bid by Japan-based Nippon
President Donald Trump said Friday that U.S. Steel will keep its headquarters in Pittsburgh as part of what he called a 鈥減lanned partnership鈥� that seemed to signal that he鈥檒l approve a bid by Japan-based Nippon Steel to make a big investment in the iconic American steelmaker, if not buy it outright.Still, Trump's statement left it vague as to whether he is approving Nippon Steel's bid after he vowed repeatedly to block the deal to prevent U.S. Steel from being foreign-owned.More recently, Trump suggested that Nippon Steel would invest in U.S. Steel, not buy it, and one union official suggested Friday that the federal government will have a role in the company's management going forward. But investors seemed to take Trump's statement as a sign that he's approving some sort of merger, sharply pushing up U.S. Steel's shares, and the companies issued approving statements.Nippon Steel said the partnership is a 鈥済ame changer 鈥� for U.S. Steel and all of its stakeholders, including the American steel industry, and the broader American manufacturing base.鈥� U.S. Steel said it 鈥渨ill remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years."Nippon Steel's nearly $15 billion bid to buy U.S. Steel was blocked by former President Joe Biden on his way out of office and, after Trump became president, subject to another national security review by the Committee on Foreign Investment in the United States.In his statement Friday, Trump said that 鈥渁fter much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh.鈥漌hat Trump called a 鈥減lanned partnership鈥� will 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 control U.S. Steel under the arrangement. Neither company explained Friday how the partnership would be structured.Josh Spoores, the Pennsylvania-based head of steel Americas analysis for commodity researcher CRU, said that, from what he鈥檚 seeing, 鈥渢his 鈥榩artnership鈥� is a green light for the acquisition.鈥漇hares of U.S. Steel jumped 21% on the news, and continued rising in aftermarket trading.U. S. Steel鈥檚 board and stockholders approved Nippon Steel鈥檚 bid last year. It has been opposed by the United Steelworkers union. The union had no immediate comment Friday.A union official who defied the United Steelworkers' leadership to support Nippon Steel's bid said Friday that the federal government could take on a major role in the deal.鈥淚t鈥檚 sounds like the deal鈥檚 done,鈥欌� said Jason Zugai, vice president of the United Steelworkers union local at U.S. Steel's Irvin finishing plant near Pittsburgh.Zugai said he was 鈥渞elieved, happy and thankful.鈥欌橦e hadn't seen anything on paper but, he said, his understanding was that Nippon 鈥渨ill make all the profit鈥欌� and the federal government will have 鈥渁 golden chair鈥欌� that allows it to veto any plans to idle or shut down U.S. Steel plants.Pittsburgh sister station WTAE reports that, in a statement Friday, United Steelworkers President David McCall said, "We cannot speculate about the impact of today's announcement without more information. Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs."Pennsylvania Gov. Josh Shapiro showed support for the deal, releasing a statement that said, in part, "We have the opportunity to deliver historic investments, ensure the future of American steelmaking continues to run through the Mon Valley while the headquarters of U.S. Steel remains in Pittsburgh."Pennsylvania U.S. Sen. John Fetterman posted on X, "Vowed to jam that up almost a year and a half ago and we did. The original deal was a death sentence for Mon Valley steel. Nippon coughed up an extra $14B. This is why we fight for the union way of life, and I will continue to support @steelworkers no matter the cause."Keeping U.S. Steel's headquarters had always been part of Nippon Steel's bid to buy it. To sweeten the deal, Nippon Steel had offered up a $2.7 billion commitment to upgrade U.S. Steel's two blast furnaces and pledged that it wouldn't import steel slabs that would compete with the facilities.Nippon Steel also had pledged not to conduct layoffs or plant closings during the term of the existing labor agreement and to protect the best interests of U.S. Steel in trade matters.U.S. Steel's CEO David Burritt warned last September that blocking Nippon Steel's bid would mean U.S. Steel would 鈥渓argely pivot away鈥� from investing in its two blast furnaces 鈥� one just outside Pittsburgh and one in Gary, Indiana 鈥� and it would raise 鈥渟erious questions鈥� about remaining headquartered in Pittsburgh.As recently as December, Trump said he was "totally against the once great and powerful U.S. Steel being bought by a foreign company.鈥漈hen in February, Trump suggested that Nippon Steel wouldn't buy U.S. Steel, as it had planned, but that it would instead invest in U.S. Steel.Last month, Trump ordered a new national security review of Nippon Steel鈥檚 proposed bid.

President Donald Trump said Friday that U.S. Steel will keep its headquarters in Pittsburgh as part of what he called a 鈥減lanned partnership鈥� that seemed to signal that he鈥檒l approve a bid by Japan-based Nippon Steel to make a big investment in the iconic American steelmaker, if not buy it outright.

Still, Trump's statement left it vague as to whether he is approving Nippon Steel's bid after he vowed repeatedly to block the deal to prevent U.S. Steel from being foreign-owned.

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More recently, Trump suggested that Nippon Steel would invest in U.S. Steel, not buy it, and one union official suggested Friday that the federal government will have a role in the company's management going forward. But investors seemed to take Trump's statement as a sign that he's approving some sort of merger, sharply pushing up U.S. Steel's shares, and the companies issued approving statements.

Nippon Steel said the partnership is a 鈥済ame changer 鈥� for U.S. Steel and all of its stakeholders, including the American steel industry, and the broader American manufacturing base.鈥� U.S. Steel said it 鈥渨ill remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years."

Nippon Steel's nearly $15 billion bid to buy U.S. Steel was blocked by former President Joe Biden on his way out of office and, after Trump became president, subject to another national security review by the Committee on Foreign Investment in the United States.

In his statement Friday, Trump said that 鈥渁fter much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh.鈥�

What Trump called a 鈥減lanned partnership鈥� will 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 control U.S. Steel under the arrangement. Neither company explained Friday how the partnership would be structured.

Josh Spoores, the Pennsylvania-based head of steel Americas analysis for commodity researcher CRU, said that, from what he鈥檚 seeing, 鈥渢his 鈥榩artnership鈥� is a green light for the acquisition.鈥�

Shares of U.S. Steel jumped 21% on the news, and continued rising in aftermarket trading.

U. S. Steel鈥檚 board and stockholders approved Nippon Steel鈥檚 bid last year. It has been opposed by the United Steelworkers union. The union had no immediate comment Friday.

A union official who defied the United Steelworkers' leadership to support Nippon Steel's bid said Friday that the federal government could take on a major role in the deal.

鈥淚t鈥檚 sounds like the deal鈥檚 done,鈥欌� said Jason Zugai, vice president of the United Steelworkers union local at U.S. Steel's Irvin finishing plant near Pittsburgh.

Zugai said he was 鈥渞elieved, happy and thankful.鈥欌�

He hadn't seen anything on paper but, he said, his understanding was that Nippon 鈥渨ill make all the profit鈥欌� and the federal government will have 鈥渁 golden chair鈥欌� that allows it to veto any plans to idle or shut down U.S. Steel plants.

Pittsburgh sister station reports that, in a statement Friday, United Steelworkers President David McCall said, "We cannot speculate about the impact of today's announcement without more information. Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs."

Pennsylvania Gov. Josh Shapiro showed support for the deal, that said, in part, "We have the opportunity to deliver historic investments, ensure the future of American steelmaking continues to run through the Mon Valley while the headquarters of U.S. Steel remains in Pittsburgh."

Pennsylvania U.S. Sen. John Fetterman , "Vowed to jam that up almost a year and a half ago and we did. The original deal was a death sentence for Mon Valley steel. Nippon coughed up an extra $14B. This is why we fight for the union way of life, and I will continue to support @steelworkers no matter the cause."

Keeping U.S. Steel's headquarters had always been part of Nippon Steel's bid to buy it. To sweeten the deal, Nippon Steel had offered up a $2.7 billion commitment to upgrade U.S. Steel's two blast furnaces and pledged that it wouldn't import steel slabs that would compete with the facilities.

Nippon Steel also had pledged not to conduct layoffs or plant closings during the term of the existing labor agreement and to protect the best interests of U.S. Steel in trade matters.

U.S. Steel's CEO David Burritt warned last September that blocking Nippon Steel's bid would mean U.S. Steel would 鈥渓argely pivot away鈥� from investing in its two blast furnaces 鈥� one just outside Pittsburgh and one in Gary, Indiana 鈥� and it would raise 鈥渟erious questions鈥� about remaining headquartered in Pittsburgh.

As recently as December, Trump said he was "totally against the once great and powerful U.S. Steel being bought by a foreign company.鈥�

Then in February, Trump suggested that Nippon Steel wouldn't buy U.S. Steel, as it had planned, but that it would instead invest in U.S. Steel.

Last month, Trump ordered a new national security review of Nippon Steel鈥檚 proposed bid.