By Kelly Cloonan
Shares of U.S. Steel rose after President Trump said the company would remain based in the U.S. through a planned partnership with Japan's Nippon Steel.
The stock rose 25%, to $53.60, on Friday. Shares have risen 49% over the past 12 months.
The partnership between the two steel companies would create at least 70,000 jobs and involves a $14 billion investment in the U.S., with the bulk of it occurring over the next 14 months, Trump said in a post on Truth Social on Friday.
U.S. Steel plans to remain headquartered in Pittsburgh, the Truth Social post said.
Trump's announcement comes after years of deal talks between U.S. Steel and Nippon Steel, which initially offered to takeover the U.S. company in a blockbuster $14.1 billion bid in 2023. Since returning to office, Trump has pressured the Japanese steelmaker to pile on investments in U.S. Steel, whose older mills have been hurt by years of losses and deferred maintenance.
Nippon Steel roughly doubled its spending plans in recent days, pledging at least $11 billion in the storied U.S. company's plants by 2028 amid a negotiation process kickstarted earlier this week. The company has also pledged to build a brand-new mill, which could bring the total to about $14 billion.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
May 23, 2025 16:19 ET (20:19 GMT)
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