Nippon’s takeover of US Steel includes an agreement that gives the US government veto power over corporate decisions, which could serve to protect US economic interests. The finalized deal ends 18 months of negotiations.
Japanese steel giant Nippon Steel closed a $14.9 billion (€12.96 billion) acquisition of US Steel, both companies said on Wednesday.
According to a joint press release, US Steel will retain its name and headquarters in Pittsburgh, Pennsylvania. The “partnership” will also include “massive investments in steelmaking” in several US states.
Under the deal’s terms, Nippon bought 100% of US Steel shares at $55 per share, the same offer that was made when Nippon first introduced its bid in 2023.
“The companies have now completed the transaction as contemplated by their merger agreement,” Nippon and US Steel said.
Revamped deal after 18-month delay
The deal was held up for 18 months by opposition from US steel unions, and was formally blocked by outgoing President Joe Biden in January 2025, who cited national security concerns and risks to key supply chains.
Current President Donald Trump also opposed the takeover on the campaign trail.
After taking office, the Trump administration ordered a new national security review of Nippon’s bid, while at the same time beginning negotiations for concessions.
The finalized deal includes a commitment by Nippon for $11 billion of new investments in US Steel for the next three years. It also includes an agreement based on national security concerns to meet US production demands for steel.
Additionally, US Steel’s top management, including the CEO, will be US citizens.
US government maintains veto power
Importantly, the revamped deal allows for a “golden share,” which gives the US government veto authority over corporate decisions that could affect US jobs, representing an unusually high level of government control given by the companies.
These include vetoing moves like changes to plant operations, cutting production capacity and moving jobs overseas.
The acquisition agreement also includes a big role for Trump, giving the president authority to name a board member.
The inclusion of this golden share clause was part of a bid by Nippon to allay concerns from the US Committee on Foreign Investment, which checks foreign investment for national security risks.
Eiji Hashimoto, Nippon Steel’s CEO, thanked Trump in a press release, and framed the acquisition as a “new chapter” for the ailing US steel giant.
US Steel CEO Dave Burritt said that “American workers secured the best possible deal.”
When the takeover was first pitched in 2023, US Steel had approved the $14.9-billion bid saying it would help protect the ailing firm from intense competition from abroad, including China.
On Wednesday, Nippon Steel said its annual steel production capacity is now expected to reach 86 million tons.
Edited by: Rana Taha
DW News
