Trump effectively approves Nippon Steel's takeover of U.S. Steel

Kyodo News

15 hours ago

KYODO NEWS - 30 minutes ago - 10:03 | All, World, Japan
U.S. President Donald Trump on Friday effectively approved a deal for Nippon Steel Corp. to acquire United States Steel Corp., reversing his staunch opposition to the Japanese company's takeover bid after it committed to investing heavily in the struggling American producer.
Nippon Steel and U.S. Steel said Trump has "approved" their "historic partnership that will unleash unprecedented investments in steelmaking in the United States."
In a statement, the two steelmakers thanked Trump for his "bold leadership and strong support" for their merger, adding that they have entered into a national security agreement with the U.S. government.
Under the accord, Nippon Steel is committed to newly investing $11 billion by 2028 for the deal. The companies said a "golden share" will be issued to the U.S. government, giving it veto power over major management decisions, such as approving or rejecting board members and slashing production capacity.
Trump said Friday in his signed order that a national security risk linked to Nippon Steel's bid for U.S. Steel can be mitigated if conditions presented by the U.S. government are met.
Trump's green light for what he has described as a "great partnership" between the Japanese and U.S. producers caps a saga that began in December 2023, when both sides first announced the proposed $14.1 billion deal.
Trump needed to officially decide whether to approve Nippon Steel's set of proposals for U.S. Steel after receiving a recommendation last month from a panel of federal agencies to take a fresh look at the Japanese company's buyout bid.
Just weeks before leaving office in January, former U.S. President Joe Biden blocked the sale of U.S. Steel to Nippon Steel, citing national security concerns, following a recommendation by the Committee on Foreign Investment in the United States.
During the 2024 presidential election cycle, both Biden and Trump made the case that U.S. Steel, a once-iconic American company, should remain in domestic hands, a view advocated by the leadership of the powerful United Steelworkers union.
U.S. Steel and its shareholders were supportive of the takeover, which would create the world's third-largest steelmaker by volume.
As U.S. Steel and the union are based in Pennsylvania, which was a key battleground state in the Nov. 5 presidential election, the foreign buyout offer became highly politicized despite coming from a leading manufacturer based in Japan, a close U.S. ally.
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