Nippon Steel officials: Trump has approved company's plan to buy US Steel
Officials at Nippon Steel say that they believe that the company's plan to purchase US Steel has been approved. The comments come after the two steelmakers announced that US President Donald Trump had approved their partnership.
The officials say that the company's bid to acquire 100 percent of common shares in US Steel and turn it into a wholly owned subsidiary has been given the go-ahead.
Nippon Steel and US Steel said in a joint statement released on Saturday, Japan time, that the companies have entered into a National Security Agreement with the US government.
The statement says the NSA "provides that approximately 11 billion dollars in new investments will be made by 2028."
The NSA also includes commitments related to governance, including a "golden share" to be issued to the US government, domestic production and trade matters.
The golden share allows the US government to veto important decisions related to the management of US Steel.
The companies said, "We thank President Trump and his Administration for their bold leadership and strong support for out historic partnership."
They added, "We look forward to putting out commitments into action to make American steelmaking and manufacturing great again."
Nippon Steel announced a plan to buy out US Steel about 18 months ago. But then-President Joe Biden issued an order blocking the purchase on national security grounds.
Nippon Steel's decision to implement additional investments in the US apparently led to the revision of Biden's order by Trump, paving the way for the Japanese firm to purchase its US rival.
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