Posted on 05/23/2025 12:56:15 PM PDT by DFG
President Donald Trump said Friday that U.S. Steel and Nippon Steel will form a “partnership,” after the Japanese steelmaker’s bid to acquire its U.S. rival had been blocked on national security grounds.
U.S. Steel shares jumped more than 24%.
(Excerpt) Read more at cnbc.com ...
It is the only logical solution. Nippon Steel is willing to invest and ramp up production. Their main American suitor (Cleveland Cliffs) is still closing plants. A good sign that they want them only for their customer list.
Good. Nippon Steel will invest in and upgrade U.S. Steel. I’d like to see three way mergers between some major U.S. auto, steel, shipbuilding, port operations and chip companies between U.S., Japan and South Korea. More integrated major manufacturing between the three will bring capital into the U.S. and strengthen our military alliance with them.
Wouldn’t be necessary if Dems, for decades, and the EPA would have let U.S. Steel upgrade their plants.
Their model was all or nothing. No minor upgrades.
No coincidence that President Trump is holding a rally at US Steel in Pittsburgh next week, May 30.
Hopefully this a one off. We don’t need more globalist mergers.
NS is a good company. What matters is who can keep workers employed, not the jurisdiction in which the parent is organized.
Nippon is the 4th largest steel producer in the world. At some point, legacy U.S. producers are going to face the prospect of either selling out to foreign buyers or going out of business like Bethlehem Steel did in 2003.
Not if we tariff steel imports.
Imposing tariffs on steel imports will accelerate the moves by foreign producers to acquire U.S. companies to produce steel here.
I bought some US Steel 2 months ago. Nice bump today.
I remember my Navy vet uncle telling me how we sold the Japs the 3rd Ave so and on December 7, 1941 they gave it back to us.
Looks like we are importing foreign capital. Selling off a critical defense industry manufacturing plant. Why are we giving up on American made and owned? Why have tariffs if the end result is foreign ownership of jobs and resources?
Japan competes unfairly. They have cheap interest rates and subsidies for their domestic steel companies which allowed them to be subsidized and compete unfairly against American owned Cliffs for this steel plant. I guess it’s ok for this type of trade, right because well Trump. How much of America are we going to sell off?
Michael Yon (former special forces man who has a big presence on Twitter) said Japan was the United States’ most important ally.
Let’s see if Nippon Steel can hand us Labor Unions. My vote is that they get sick of dealing with them and the plant shuts down in 3 years.
(yet another case of the Union defeating The Man)
“Why are we giving up on American made and owned?”
We are not giving up American made, they aren’t moving or closing the plant, that’s why the deal was made. Better this than closing the plant.
“Partnership” is a fig leaf to avoid offending American protectionist sensibilities. Kind of like when Daimler-Benz “partnered” Chrysler. They can name the merged entity Red White & Blue Steel, but it’ll still be Nippon.
It was the right call. Despite pushback from both the Biden and Trump administrations, there never was a national security issue to block the buy. Nippon has deep pockets and a willingness to spend updating and renovating US Steel.
At any rate, it was the cherry on the cake of one of my best weeks in the market over more than 40 years.
The week started out with the takeover of TXNM, a utility in the Southwest by Blackstone, and I had two tech plays explode upward this week too: Ioniq, a quantum computing play, and OKLA, a small modular nuclear play.
Alliances and partnerships are good.
Should a steelworker care who pays him? Nippon will be investing in US plants and US jobs.
If they are making the stuff here and hiring US workers, why should we care which investors turn a profit? If you think that Nippon will benefit from the acquisition, you can buy its hares through the American Depositary Receipt, NPSCY.
You think that Nippon is naive about US business practices?
Bear in mind that Cliffs, US Steel, and Nucor all have union payrolls and all turn a profit.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.