Key facts
- Nippon Steel has acquired 100% of U.S. Steel for $14.9 billion.
- The deal includes a commitment from Nippon Steel to invest $11 billion by 2028.
- Key executive and board positions at U.S. Steel must be held by U.S. citizens.
- The U.S. government will hold a "golden share" granting oversight on specific business decisions.
- The United Steelworkers union will monitor Nippon Steel's adherence to the agreement's terms.
Nippon Steel Corporation has finalized its acquisition of U.S. Steel Co. for $14.9 billion, a deal that faced initial opposition from various stakeholders including former Presidents and the United Steelworkers union. The finalized agreement includes significant conditions approved by the U.S. government, designed to ensure continued investment and national security interests.
Key terms of the deal bind Nippon Steel to invest $11 billion in U.S. Steel by 2028, maintain its Pittsburgh headquarters, and ensure it can continue to produce steel for the U.S. market in compliance with U.S. laws. Furthermore, the CEO and a majority of the U.S. Steel board must be U.S. citizens. The U.S. government has been granted a "golden share," which provides an independent director on the board and specific consent rights over crucial business decisions, including capital investments, offshoring, competitor acquisitions, and the closure or idling of manufacturing facilities.
Company leadership from both Nippon Steel and U.S. Steel explicitly thanked President Trump for his role in greenlighting the deal and its terms, citing his "historic and visionary decision" and "bold leadership." Takahiro Mori, Nippon Steel's Vice Chairman and future Chairman of the U.S. Steel Board, expressed delight in making the deal a reality and shared President Trump's commitment to protecting the American steel industry, workers, and national security.
In contrast, the United Steelworkers union, which had previously opposed the acquisition and attempted to exercise its right of first refusal to support a bid from Cleveland Cliffs Inc., adopted a more critical stance. Union President David McCall characterized Nippon Steel as a "serial trade cheater" and the deal as a "disaster." Following the sale's conclusion, McCall vowed that the union would remain vigilant, stating, "We will continue watching, holding Nippon to its commitments." He also commented on the "startling degree of personal power over a corporation" granted by the "golden share" to the President.