Former U.S. President Donald Trump said Sunday that the United States will maintain control over U.S. Steel (X.N) despite its pending partnership with Japanese steel giant Nippon Steel (5401.T).
The deal, which was unveiled on Friday, will see Nippon Steel inject $14 billion into U.S. Steel’s operations. This includes up to $4 billion earmarked for a new steel plant. Trump, who had commented on the merger the same day, said the agreement would generate 70,000 jobs.
When asked to clarify the terms of the partnership, Trump responded firmly: “It will be controlled by the United States, otherwise I wouldn’t make the deal.”
Speaking to reporters while departing his New Jersey golf club for Washington, Trump added that key lawmakers had encouraged him to pursue the agreement.
“It’s an investment and it’s a partial ownership, but it will be controlled by the USA,” he reiterated.
If completed, the merger would form the world’s third-largest steel producer by volume, ranking behind only China’s Baowu Steel Group and Luxembourg-based ArcelorMittal (MT.LU), according to data from the World Steel Association.
While official terms of the transaction have yet to be made public, investor sentiment remains optimistic. Market watchers expect the conditions to resemble those set in 2023, which would involve U.S. Steel eventually delisting from public markets, with shareholders receiving a cash buyout.
The deal has garnered intense attention on Wall Street and within political circles, especially amid concerns that foreign ownership could lead to job losses in Pennsylvania—home to U.S. Steel’s headquarters.
