Nippon, US Steel complete partnership deal
NEW YORK: Nippon Steel and US Steel announced Wednesday they have completed a partnership deal in which the US government will essentially have veto power over significant decisions affecting US jobs.
The agreement modifies a transaction originally announced in December 2023 in which Nippon Steel of Japan had agreed to acquire US Steel for $14.9 billion.
But the outright acquisition of the iconic US company sparked bipartisan political opposition, including from President Donald Trump, whose administration worked with the companies on a revamped deal in which the US government will have a 'golden share' of the company that gives it a say on Nippon's plans for the assets.
Trump, who railed against the proposed deal throughout the 2024 presidential campaign, last month announced a pivot he described in a May 23 social media post as a 'planned partnership' in which Nippon pledged to invest billions of dollars and retain its headquarters in Pittsburgh.
On Wednesday, US Steel filed a notice with US securities regulators to delist its shares on the New York Stock Exchange. The NYSE halted trading, pointing to a 'merger effective' order.
'The Companies have now completed the transaction as contemplated by their merger agreement,' Nippon and US Steel said in a joint press release. 'The Companies have also entered into a National Security Agreement with the US Government, and US Steel will issue a Golden Share to the US Government.'
Under the December 2023 transaction, Nippon agreed to pay $55 per share for US Steel, an all-cash deal that included a 40 percent premium. While the transaction included a pledge to maintain the name US Steel and the company's Pittsburgh headquarters, industry watchers expected an exodus of US Steel executives.
But after the deal sparked opposition from the United Steelworkers Union and a broad range of politicians, including then president Joe Biden and former Ohio senator JD Vance — now Trump's vice president — Nippon stepped up its lobbying efforts in Washington and Pittsburgh to win support for the transaction.
In early January, shortly before leaving office, Biden blocked the transaction, saying that placing 'one of America's largest steel producers under foreign control and create risk for our national security and our critical supply chains.'
But backers of the deal had been hoping the shift in political climate following the presidential election might revive the deal's prospect.
Besides agreeing to the Pittsburgh headquarters and to maintaining US production, the revamped deal's National Security Agreement calls for a majority of the US Steel's board to be US citizens and for key leaders, including the CEO, to be US citizens.
The US government's 'golden share' will allow it the right to appoint one independent director and grant it consent rights for proposed capital budget cuts, the redomiciling of activities outside the United States and on acquisitions in the United States.
'I am delighted that we have made this day a reality,' said Nippon Vice Chairman Takahiiro Mori, who will serve as Chairman of US Steel. 'We share President Trump's commitment to protect the future of the American steel industry, American workers, and American national security, and we look forward to building a stronger and brighter future for US Steel.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
26 minutes ago
- Express Tribune
Anti-war protesters gather outside White House, urge action against Israel
Hundreds of demonstrators gathered outside the White House on June 18 evening to protest Israel's ongoing military actions in Gaza and Iran, calling for an end to the violence and urging President Donald Trump to resist deeper US involvement in the widening conflict. The protest, organised by the ANSWER Coalition, featured a sea of Palestinian and Iranian flags, keffiyehs, and signs reading 'No New War in the Middle East' and 'Stop US Weapons to Israel.' Demonstrators chanted in support of a 'people's arms embargo', demanding that US arms shipments to Israel be halted immediately. The protest comes as US officials weigh a possible entry into the regional war, following Israel's unprovoked attacks on Iranian soil and Iran's retaliatory missile launches. At one point, a small group carrying Israeli flags arrived, sparking tension as protesters began chanting against Zionism. Police intervened quickly, forming a bicycle barricade to separate the groups. A minor confrontation was observed when an officer pushed back a protester who refused to step away. Despite periods of heavy rain, the demonstration remained peaceful but impassioned, with chants for Palestinian liberation and an end to Israeli military actions across Palestine, Iran, Lebanon, and Yemen. While Israel claimed its attacks targeted Iran's Natanz enrichment site, the International Atomic Energy Agency (IAEA) reported damage to underground centrifuge halls. Iran accused Israel of also hitting residential areas. In response, Iran launched 400 missiles and drones at Israeli cities, including the much-touted Fattah-1 missile. The flare-up also follows statements made by US President Donald Trump, who stated Iran had reached out for negotiations but that it was "very late to be talking". Protests also took place across different cities in the US, with many taking to the streets of New York, Philadelphia, and Orlando to march against US involvement in the Iran-Israel war. Marches are expected to continue until June 21.
Business Recorder
an hour ago
- Business Recorder
In meeting with COAS Munir, Trump lauds Pakistan's ongoing efforts for regional peace, stability
US President Donald Trump in a meeting with Chief of Army Staff (COAS) Field Marshal Syed Asim Munir lauded Pakistan's ongoing efforts for regional peace and stability, and appreciated the robust counter-terrorism cooperation between the two states. President Trump was accompanied by Secretary of State Senator Marco Rubio, and Steve Witkoff, the US Special Representative for Middle Eastern Affairs, while Field Marshal Asim Munir was joined in by Pakistan's National Security Advisor,' the Inter-Services Public Relations (ISPR) said in a press release today. The ISPR said that although initially scheduled for one hour, the meeting extended for over two hours, underscoring the depth and cordiality of the dialogue. During the meeting, the army chief conveyed the deep appreciation of Pakistan for President Trump's constructive and result-oriented role in facilitating a ceasefire between Pakistan and India in the recent regional crisis. 'The COAS acknowledged President Trump's statesmanship and his ability to comprehend and address the multifaceted challenges faced by the global community,' said the statement. The two sides also discussed avenues for expanding bilateral cooperation in multiple domains including trade, economic development, mines and minerals, artificial intelligence, energy, cryptocurrency, and emerging technologies. 'President Trump expressed keen interest in forging a mutually beneficial trade partnership with Pakistan based on long-term strategic convergence and shared interests,' said ISPR. President Trump commended the Field Marshal's leadership and decisiveness during a period of complex regional dynamics. Bilawal sees COAS-Trump talks as positive step The two sides also held a detailed exchange of views on the prevailing tensions between Iran and Israel, with both leaders emphasizing the importance of resolution of the conflict. Field Marshal Syed Asim Munir extended an invitation to President Trump, on behalf of the Government of Pakistan, to undertake an official visit to Pakistan at a mutually convenient date. 'The engagement marks a significant moment in the ongoing efforts to reinforce the longstanding partnership between Pakistan and the United States, built upon shared objectives of peace, stability, and prosperity,' the press release added. On Wednesday, President Trump hosted Pakistan's army chief for lunch. The meeting, listed on the president's official schedule, was held in the Cabinet Room and closed to the press.
Business Recorder
an hour ago
- Business Recorder
Tariffs boost strategic importance of US Steel deal, Nippon Steel CEO says
TOKYO: The US administration's policy shift to introduce high tariffs will increase the strategic importance of Nippon Steel's business development in the US market, the top Japanese steelmaker's CEO, Eiji Hashimoto, said on Thursday. Hashimoto was speaking at a press conference in Tokyo a day after Nippon Steel closed its $14.9 billion acquisition of US Steel, confirming an unusual degree of power for President Donald Trump after the Japanese company's 18-month struggle to close the purchase. Nippon, US Steel complete partnership deal The companies also disclosed details of a national security agreement inked with the Trump administration, which gives the president the authority to name a board member as well as a non-economic golden share. The measures represent an unusual level of control conceded by the companies to the government to save the deal, after a rocky path to approval spurred by high-level political opposition.
