US President Donald Trump
Credit: Reuters Photo
Morristown, New Jersey: President Donald Trump said on Sunday that the United States will have control over US Steel as part of the company's partnership with Japanese firm Nippon Steel.
As part of the deal announced on Friday, Nippon Steel plans to invest $14 billion into US Steel's operations, including up to $4 billion in a new steel mill. Trump said on Friday the merger would create 70,000 jobs.
Pressed for more details of the agreement, Trump said on Sunday: "It will be controlled by the United States, otherwise I wouldn't make the deal."
Speaking to reporters as he left for Washington after a weekend at his New Jersey golf club, Trump said relevant lawmakers had pressed him to make the deal. "It's an investment and it's a partial ownership, but it will be controlled by the USA," he said.
The merger would create the world's third-largest steel producer by volume, following China's Baowu Steel Group and Luxembourg-based ArcelorMittal, according to World Steel Association data.
While no details were released, investors have expressed confidence that terms will be similar to those agreed in 2023. Investors have said that eventually US Steel will no longer be publicly traded and they will receive a cash payout for their shares.
The deal has been one of the most highly anticipated on Wall Street after it morphed into the political arena with fears that foreign ownership would mean job losses in Pennsylvania, where US Steel is headquartered.