By Kakidai-Wikipedia
Nippon Steel has successfully completed its $14.9 billion acquisition of US Steel, capping off an 18-month-long struggle to win regulatory approval — a process that has unexpectedly amplified the influence of US President Donald Trump.
The Japanese steelmaker announced on Wednesday that it had finalized the deal to acquire 100% of US Steel’s shares at $55 apiece, a price first proposed in December 2023. The transaction’s closure was accompanied by the release of a national security agreement with the Trump administration, granting the president extraordinary authority over the company’s future, including the right to appoint a board member and control via a unique “golden share.”
Eiji Hashimoto, Chairman and CEO of Nippon Steel, expressed gratitude to Trump for helping bring the acquisition to fruition. He acknowledged the significant concessions made to secure US regulatory approval, which included unprecedented oversight by the federal government — a move deemed essential to overcoming political resistance that nearly derailed the merger.
The golden share awarded to the US government grants sweeping veto powers over key corporate decisions. These include the authority to block plant closures, job cuts, reductions in production capacity, offshoring of American jobs, and even a relocation of the US Steel headquarters from Pittsburgh, Pennsylvania. Other restricted actions include any proposed name change or future acquisition of competing firms.
Commerce Secretary Howard Lutnick previewed the terms on social media over the weekend, and the full scope of government oversight was confirmed in Wednesday’s regulatory filing. The measure was crucial for satisfying the Committee on Foreign Investment in the United States (CFIUS), which had previously raised national security concerns over foreign control of the iconic American steelmaker.
While the agreement enabled the deal to move forward, legal experts have warned that such deep governmental entanglement in corporate governance could discourage foreign investment in American industries. Nevertheless, the deal includes substantial benefits for the US economy. Nippon Steel has pledged to inject $11 billion into US Steel through 2028 — including $1 billion earmarked for a new steel mill, with a potential $3 billion increase in subsequent years.
As the world’s fourth-largest steel producer, Nippon Steel now stands to benefit from America’s infrastructure boom while its international competitors continue to face hefty 50% tariffs. Moreover, the company avoided a $565 million breakup fee that would have been triggered had the acquisition fallen through.
Nippon Steel also projects a major expansion in production capacity, with its global crude steel output expected to hit 86 million tonnes annually — edging closer to its strategic target of 100 million tonnes.
Trump praised the Japanese steelmaker as a “great partner,” signaling a warmer stance than during the election campaign, when both he and then-President Joe Biden publicly opposed the merger. Their objections, aligned with those of the United Steelworkers union, were seen as attempts to sway voters in Pennsylvania — a crucial battleground state.
In January, shortly before leaving office, Biden officially blocked the deal on national security grounds, prompting Nippon Steel and US Steel to file lawsuits claiming the review process was politically motivated. The Biden administration denied any bias. However, a shift came with Trump’s return to power. In April, his administration launched a new 45-day review, giving the companies fresh hope.
Despite some initial ambiguity in Trump’s public messaging — where he alternately welcomed foreign “investment” and proposed limiting the Japanese firm to a minority stake — a turning point came after his May 30 campaign rally, which signaled likely approval.
The green light arrived last Friday in the form of an executive order that permitted the merger, contingent upon the signing of the national security agreement that established the golden share.
Markets reacted positively. Shares of Nippon Steel, traded under the ticker NPSCY, rose 2.7% by 11:00am in New York (15:00 GMT), reflecting investor confidence in the deal and its long-term implications for US-based steel production and infrastructure development.
