U.S. President Donald Trump announced on Friday that the potential national security risks associated with Nippon Steel’s $14.9 billion proposal to acquire U.S. Steel can be addressed if specific conditions outlined by his administration are met, clearing the path for the transaction’s approval.

Following the announcement, shares of U.S. Steel rose by 3.5% after trading hours, as investors speculated that the deal was nearing completion. In an executive order, Trump indicated that the conditions to mitigate national security concerns would be specified in an agreement, though he did not provide specific details. “I additionally find that the threatened impairment to the national security of the United States arising as a result of the Proposed Transaction can be adequately mitigated if the conditions set forth in section 3 of this order are met,” Trump stated in the order, which was released by the White House.

In response, the companies expressed gratitude to Trump in a news release, mentioning that the agreement involves $11 billion in new investments by 2028 and governance commitments, such as issuing a golden share to the U.S. government. However, they did not specify the extent of control this golden share would grant the U.S. Earlier on Friday, U.S. Steel shares had declined after a Nippon Steel executive informed the Japanese Nikkei newspaper that their planned acquisition of U.S. Steel would require “a degree of management freedom” following Trump’s earlier statement that the U.S. would retain control through a golden share.

The bid, first announced by Nippon Steel in December 2023, has faced opposition from the start. Both Democratic former President Joe Biden and Trump, a Republican, asserted last year that U.S. Steel should remain U.S.-owned, as they sought to woo voters ahead of the presidential election in Pennsylvania, where the company is headquartered.

Biden in January, shortly before leaving office, blocked the deal on national security grounds, prompting lawsuits by the companies, which argued the national security review they received was biased. The Biden White House disputed the charge.

The steel companies saw a new opportunity in the Trump administration, which began on January 20 and opened a fresh 45-day national security review into the proposed merger in April.

But 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, spurred confusion.

At a rally in Pennsylvania on May 30, Trump lauded an agreement between the companies and said Nippon Steel would make a “great partner” for U.S. Steel. But he later told reporters the deal still lacked his final approval, leaving unresolved whether he would allow Nippon Steel to take ownership.

Nippon Steel and the Trump administration asked a U.S. appeals court on June 5 for an eight-day extension of a pause in litigation to give them more time to reach a deal for the Japanese firm. The pause expires Friday, but could be extended.

June 18 is the expiration date of the current acquisition contract between Nippon Steel and U.S. Steel, but the firms could agree to postpone that date