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Investing.com-- Shares of Japan’s Nippon Steel Corp (TYO:5401) jumped on Monday after U.S. President Donald Trump expressed support for the company’s $14.9 billion bid to acquire U.S. Steel (NYSE:X).
In a post on Truth Social on Friday, Trump described the proposed acquisition as a “planned partnership” that would create jobs and bolster the American economy.
Reuters reported last week that Nippon Steel has committed to investing $14 billion in U.S. Steel’s operations if the merger is approved, with up to $4 billion allocated for building a new steel mill.
Tokyo-listed shares of Nippon Steel climbed as much as 7.4% in early trading. As of 00:36 GMT, the stock was trading 4.6% higher at 3,000 yen, its highest level since April 2.
Following Trump’s endorsement, U.S. Steel shares soared 21% on Friday, as investors interpreted the statement as a sign of presidential approval for the long-contested deal.
The acquisition, announced in December 2023, had faced opposition over national security concerns, leading to a block by former President Joe Biden. However, Trump’s recent directive for the Committee on Foreign Investment in the United States (CFIUS) to re-examine the deal has reignited hopes.