Overview

• President Donald Trump signed an executive order permitting the $14.1 billion deal after the Treasury Department secured national security safeguards.
• Under the agreement, Nippon Steel must invest $11 billion by 2028 and earmark up to $14 billion for plant upgrades and a new steel mill.
• A golden share structure gives the US government veto power over major corporate decisions and assigns it board representation in the merged company.
• The combined firm’s annual capacity will rise from 63 million to 86 million metric tons, making it the world’s second-largest steelmaker and a stronger competitor to Nucor.
• Nippon Steel shares climbed 3% on Monday as investors welcomed certainty but noted potential financial strain from hefty investment commitments.