Wedoany.com Report-Jun 1, Nippon Steel, a Japanese company, has partnered with US Steel to invest $14 billion in its operations, including up to $4 billion for a new steel mill, as reported by Reuters. This collaboration aims to strengthen the U.S. steel industry while maintaining American control over US Steel.

The deal has garnered significant attention on Wall Street, especially due to concerns that foreign ownership could lead to job losses.

On Sunday, U.S. President Donald Trump emphasized the terms of the agreement: “It will be controlled by the United States, otherwise I wouldn’t make the deal.” He noted that discussions with lawmakers influenced the partnership’s structure, ensuring alignment with national interests.

Uncertainty remains about whether this partnership involves Nippon Steel’s ongoing efforts to fully acquire US Steel, according to a separate Reuters report. If completed, the merger would position the combined entity as the world’s third-largest steel producer by volume, following China’s Baowu Steel Group and ArcelorMittal, based on World Steel Association data.

The partnership is projected to create 70,000 jobs, as stated by Trump on Friday. This development has sparked optimism among investors, who expect the deal to follow terms set in 2023, potentially leading to US Steel transitioning from a publicly traded company with shareholders receiving a cash payout.

The agreement has drawn significant attention, particularly in Pennsylvania, where US Steel is headquartered, due to concerns about the impact of foreign investment on local employment. The partnership seeks to address these concerns by prioritizing job creation and economic benefits.

In January, US Steel and Nippon Steel filed a lawsuit against the Biden administration, challenging what they described as an unfair block of their proposed $14.9 billion merger. They argued that the merger would have revitalized U.S. steel communities, secured jobs, and strengthened national security. “This partnership is a step toward ensuring a robust steel industry that supports American workers and communities,” said a US Steel spokesperson.

The White House has not yet responded to inquiries about the announcement. The partnership reflects efforts to balance economic growth with national priorities, positioning the U.S. steel sector for global competitiveness while fostering job opportunities and industry innovation.