US Steel shares slip as Nippon Steel faces Trump's hurdle over control
Shares of U.S. Steel dipped in premarket trading after a Nippon Steel executive told the Japanese Nikkei newspaper that its planned acquisition of the company required "a degree of management freedom" to go ahead, after President Donald Trump said he would exercise "total control" over the U.S. steelmaker.
The comments signal that last-minute discussions continue regarding the structure of the deal, which was opposed by then-U.S. President Joe Biden and Trump when it was first proposed. Trump said on Thursday that the U.S. will have "a golden share" in U.S. Steel.
"It's 51 per cent ownership by Americans," Trump said while speaking to reporters at the White House. He did not provide details on how the arrangement would be structured.
The $14.9 billion deal was first announced in December 2023 to opposition across the U.S. political spectrum, and has run a long, uncertain route in the year-and-a-half since. U.S. Steel shares fell 4 per cent in premarket trading on Friday.
Trump's public comments, ranging from welcoming a simple "investment" in U.S. Steel by the Japanese firm to floating a minority stake for Nippon Steel, have created confusion.
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