Japan's Nippon Steel To Acquire US Steel At $55 Per Share: Report

Japan's Nippon Steel is set to finalize its acquisition of U.S. Steel Corp. X at $55 per share, according to sources familiar with the matter.

The Details: President Donald Trump confirmed his approval of the deal on Friday, describing it as a "partnership" and pledging that the company's headquarters will stay in Pittsburgh, with $14 billion in investments planned over the next 14 months.

Pennsylvania Senator Dave McCormick revealed more details of the deal to CNBC on Tuesday, saying that the majority of U.S. Steel’s board will be from the U.S. and the company will have an American CEO.

"It's a national security agreement that will be signed with the U.S. government," McCormick told CNBC's "Squawk Box."

"There'll be a golden share that will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren't cut,” McCormick said.

Why It Matters: The deal would create the world's third-largest steel producer by volume, trailing only China's Baowu Steel and Luxembourg's ArcelorMittal. For Nippon Steel, the deal is fundamental to strengthening its global presence and technological leadership, especially as its home market stagnates.

Trump's endorsement, after previously opposing the deal, removes the last significant political barrier and signals a new era for U.S. Steel. However, the exact nature of the partnership remains unclear, with Trump insisting on U.S. control and Nippon Steel aiming for full ownership.

Analysts have expressed concerns about the financial burden for Nippon Steel, given the scale and speed of the planned investment. The acquisition's success will hinge on how both companies navigate these challenges and deliver on their ambitious promises, amid changing geopolitical factors.

As the deal nears completion, all eyes are on the final agreement and its long-term impact on the global steel industry, U.S. manufacturing, and the communities that depend on U.S. Steel.

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