Japan's Nippon Steel finalizes purchase of U.S. Steel
On Wednesday, Japan-based Nippon Steel finalized its buyout of U.S. Steel (U.S. Steel logo seen May 30 at Edgar Thomas Plant near Braddock, Penn.) as it reverts to the newly-minted Nippon Steel North America. Photo by Archie Carpenter/UPI | License Photo
June 18 (UPI) -- Japan-based Nippon Steel on Wednesday completed its buyout of U.S. Steel, changing its name to Nippon Steel North America, as the former U.S. industrial giant ended trading on Wall Street under its former iconic industrial brand.
Last week, President Donald Trump officially signed off on the deal, paving the way for a finalized acquisition after the president for weeks spoke of a "partnership" between the two steel companies that would allow U.S. Steel to stay an American-owned business entity.
However, the U.S.-based steel giant became a wholly owned subsidiary company of Nippon Steel North America on Wednesday after the New York Stock Exchange issued a notice to the U.S. Securities and Exchange Commission that U.S. Steel's listing would be removed.
U.S. Steel ended trading in the morning hours as Nippon's massive American investment became final with a June 30 effective date for its NYSE delisting.
Former President Joe Biden blocked the Nippon buyout in January prior to exiting the White House, citing national security as the U.S. government's primary concern over the acquisition.
Trump originally opposed Nippon's takeover during the 2024 presidential election but flip-flopped upon taking office and in April ordered an official review of the deal.
In May, Trump stirred confusion among investors and union leaders on the agreed-upon terms of the sale when he announced in a social media post a "planned partnership" between Nippon and U.S. Steel.
Nippon Steel never balked from the initial December 2023 merger agreement terms in its SEC filing but did adopt Trump's style of language, insinuating a preconceived "partnership."
Meanwhile, U.S. Steel will continue to operate under its name.
Trump did, however, manage to compel both steel companies to sign a U.S. national security pact as a condition to his approval in clearing the transaction.
According to the terms of the national security agreement, Nippon will invest $11 billion by 2028 in U.S. Steel, which includes an initial $1 billion for a Greenfield project post-2028. In addition, U.S. Steel's CEO and a majority of its board members must be American citizens with U.S. Steel to remain a U.S.-incorporated entity.
Trump was given a "golden share" under the agreement that grants him veto power over a number of decision, such as U.S. Steel's name change or future exit from its Pittsburgh headquarters in Pennsylvania to outside of the United States.
In addition, the White House will hold sway of the moving production of steels jobs, some authority in the closure of domestic plants, sourcing and other business-related acts.
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