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3mo ago

Trump Approves Nippon Steel’s $14.9 Billion Bid for U.S. Steel Following Security Pact

The deal hinges on an $11 billion investment pledge by 2028 with a golden share granting the government veto power over key decisions.

The logos of Nippon Steel Corp. are didplayed at the company headquarters in Tokyo, Japan March 18, 2019. Picture taken March 18, 2019. REUTERS/Yuka Obayashi
A production line of a plate rolling mill is pictured at Nippon Steel's East Nippon Works Kimitsu Area plant in Kimitsu, east of Tokyo, Japan May 26, 2025. REUTERS/Issei Kato/File Photo
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Overview

  • President Trump issued an executive order on June 13 clearing the way for Nippon Steel’s acquisition of U.S. Steel contingent on a national security agreement.
  • The security pact obligates Nippon Steel to invest $11 billion in U.S. operations by 2028 and gives Washington a golden share to oversee board appointments and strategic actions.
  • Nippon Steel will take full ownership of U.S. Steel, converting it into a wholly owned subsidiary once all regulatory approvals are complete and the deal is finalized promptly.
  • The agreement preserves U.S. Steel’s Pittsburgh headquarters, mandates continued blast furnace operations for at least 10 years and safeguards or creates over 100,000 American steel jobs.
  • The approval reverses a January block by President Biden and caps a fresh 45-day review ordered by Trump in April, underscoring administration oversight of foreign investment in strategic industries.