
Nippon Steel shares climb after Trump offers support for US Steel deal

By Reuters
TOKYO: Nippon Steel shares rallied on Monday in Tokyo after US President Donald Trump expressed support for the company's US$14.9 billion bid for US Steel.
Trump said in a post on Truth Social the "planned partnership" between the two companies will create at least 70,000 jobs and add US$14 billion to the US economy.
Trump added that the bulk of that investment would occur in the next 14 months and said he would hold a rally at U.S. Steel in Pittsburgh on Friday, without offering specifics.
It is unclear whether Trump's term "partnership" refers to the full acquisition of US Steel that Nippon Steel has been pursuing. The White House did not respond to questions about the announcement on Friday.
But US Steel shares soared 21 per cent on Friday as investors interpreted the comments from Trump, who had originally opposed the deal, to mean Nippon Steel had received his approval for its long-planned takeover, the last major hurdle for the deal.
Both US Steel and Nippon Steel have lauded the comments.
For Nippon Steel, Japan's top steelmaker, the deal is core to its global expansion strategy. It would lift production to 86 million metric tons from 63 million tons now - at a time when domestic demand is declining.
Shares of Nippon, the world's fourth-largest steelmaker, gained 5 per cent to 3,025 yen in Tokyo after being untraded with a glut of buy orders earlier in the day. Nippon shares were the biggest percentage gainer on Tokyo's benchmark Nikkei 225 index.
A merger would create the world's third-largest steel producer by volume, following China's Baowu Steel Group and Luxembourg-based ArcelorMittal, according to World Steel Association data.
Source : nippon-steel-shares-climb-after-trump-offers-support-us-steel
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