Nippon Steel Completes $14.9 Billion Acquisition of U.S. Steel
Japanese steel giant, Nippon Steel has finalized its acquisition of U.S. Steel in a landmark $14.9 billion deal, securing 100% ownership of the iconic American steelmaker despite initial opposition from former U.S. President Donald Trump.
The transaction, which has now closed, follows months of political scrutiny and regulatory review, culminating in an unprecedented agreement between Nippon Steel and the U.S. government that includes a “golden share” provision.
This allows the U.S. government to appoint a board member to U.S. Steel and veto critical decisions such as plant closures, major investments, and headquarter relocations.
Under the terms of the deal, Nippon Steel has committed to investing $11 billion in U.S. Steel operations by 2028. The company also pledged to build a new mill after that date and maintain U.S. Steel’s headquarters in Pittsburgh.
American citizens will continue to hold the majority of seats on the board and occupy top executive positions within the company.
The agreement represents a significant shift in Trump’s position. Though he initially voiced strong opposition to foreign ownership of a strategic industry like steel, he reversed course after the national security agreement was finalized.
Trump publicly supported the revised deal during a campaign rally in May.
Despite the deal’s completion, the United Steelworkers union has expressed ongoing concern about the implications for workers.
The golden share provision, however, includes a clause that prevents layoffs or plant closures until at least September 2026.
The combined entity is now positioned to become one of the world’s leading steel producers, with a projected annual output capacity of about 86 million tons.
Industry analysts say the agreement sets a new precedent for foreign investment in U.S. strategic industries, balancing open-market principles with national security considerations.
Nippon Steel’s acquisition marks a significant moment in global industrial consolidation and underscores growing Japanese interest in expanding manufacturing footprints overseas, especially in sectors considered critical to American infrastructure and defense.
