Nippon Steel closes US$14.1b acquisition of US Steel
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The news: Nippon Steel has closed its USD14.1 billion ($21.8 billion) takeover of United States Steel Corporation, creating the world's second-largest steelmaker and giving the Japanese company a foothold in the US.
The numbers: The USD55 per-share transaction will allow the Japanese steelmaker to gain a strategic US foothold that will help it to avoid Trump’s 50% steel tariffs.
A press release on the completion says the partnership is expected to “protect and create” over 100,000 jobs.
The context: The parties were able to reach a conditional agreement with the Trump administration on Friday, almost 18 months since the companies first announced the transaction in December 2023. The breakthrough came after Nippon agreed to invest an additional USD11 billion in the Pittsburgh-based business, as well as issuing the US President certain veto rights.
The deal includes a “golden share” in US Steel held by the US government, which gives the administration veto power over certain aspects of corporate governance, US production and trade. “We have a golden share, which I control,” Trump explained on Thursday, adding that it would give him “total control” over relevant US Steel business decisions.
The extended transaction has spanned two presidential administrations, legal actions, union battles and lobbying campaigns. Trump had initially opposed foreign ownership of the steelworks, in line with former President Joe Biden, before ordering another security review of the sale in April.
Shares in US Steel stopped trading at 8:30am ET on Wednesday after Nippon completed the acquisition, according to an NYSE notice. The delisting will be effective on 30 June.
What they said: Eiji Hashimoto, Nippon Steel’s representative director, chairman and CEO, said, “I am very pleased that the partnership between Nippon Steel and U. S. Steel has been realized thanks to President Trump’s historic and visionary decision.”
US Steel’s CEO Dave Burritt said: “This is a momentous day for our country, our communities, and the American steel industry. Thanks to President Trump’s bold leadership, American workers secured the best possible deal. US Steel will remain rooted in the United States and continue to call Pittsburgh home.”
