Trump clears U.S. Steel-Nippon deal, terms still up in the air
U.S. Steel and Nippon Steel said Friday they have entered into a security agreement with the U.S. government, as President Trump signed an executive order allowing their proposed partnership to proceed.
Why it matters: It's a major hurdle cleared toward the two companies' eventual combination, though the exact structure of the deal still remains mostly unclear.
Catch up quick: The two companies issued a statement late Friday confirming a National Security Agreement that includes $11 billion in investment commitments by 2028, as well as a "Golden Share" for the U.S. government.
"With those approvals, all necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly," the companies said.
Yes, but: It's still not clear how much Nippon Steel is paying for U.S. Steel, or what the final entity will look like.
U.S. Steel shares rose 5% in after-hours trading late Friday to nearly $55, the original price the Japanese company agreed to pay before President Biden blocked the transaction in early January.
The intrigue: At a rally in Pennsylvania last month, Trump said Nippon would be investing $14 billion as part of a deal.
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