Nippon Steel CEO says firm will solidify position as world's leading steelmaker
Following the completion of Nippon Steel's deal to acquire US Steel, the two steelmakers released a joint statement.
In it, Nippon Steel CEO Hashimoto Eiji said: "I am very pleased that the partnership between Nippon Steel and US Steel has been realized thanks to President Trump's historic and visionary decision.
"... Building on our investment, the transfer of our advanced technologies, and the unwavering efforts of management and the employees of both companies, Nippon Steel is committed, together with US Steel, to solidifying its position as the world's leading steelmaker."
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The Mainichi
18 minutes ago
- The Mainichi
Nippon Steel finalizes deal to make US Steel wholly owned
TOKYO (Kyodo) -- Nippon Steel Corp. said Wednesday it has finalized a $14.1 billion deal to acquire United States Steel Corp. as a wholly owned subsidiary after U.S. President Donald Trump reversed his initial opposition and allowed the deal to proceed. The move will give Japan's largest steelmaker, and the world's fourth-largest, greater access to the growing U.S. market for high-grade steel, with U.S. Steel issuing a golden share to the U.S. government that grants veto power over key management decisions. "Together, Nippon Steel and U.S. Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities," the two companies said in a joint statement. Nippon Steel said it has concluded a National Security Agreement with the U.S. government and pledged to invest around $11 billion by 2028 in the iconic but struggling Pittsburgh-based company. Under the agreement, the U.S. president or a designated official will have the right to approve certain management decisions, including the closure or idling of U.S. Steel's existing manufacturing facilities in the United States. U.S. Steel will keep its headquarters in Pittsburgh, with a majority of its board of directors composed of U.S. citizens and key management positions, including the CEO, held by Americans. U.S. Steel will also maintain its capacity to produce and supply steel from its production locations in the United States to meet domestic market demand. "This framework will enable Nippon Steel to secure management flexibility and profitability at U.S. Steel while protecting U.S. national security," they said in the statement. Nippon Steel Vice Chairman Takahiro Mori, who will also serve as U.S. Steel chairman, said he shares Trump's "commitment to protect the future of the American steel industry, American workers, and American national security." Trump had firmly opposed Nippon Steel's bid to acquire U.S. Steel, which was first announced in December 2023, both during his 2024 presidential campaign and after taking office. To ease U.S. national security concerns, Nippon Steel said Americans will make up the majority of U.S. Steel's board and that it will not carry out layoffs or shut factories. It also raised its planned investment in U.S. Steel to $11 billion, 10 times the original amount, a move that likely helped secure Trump's approval for the purchase. Trump signed a presidential order Friday modifying former President Joe Biden's decision to block the sale of U.S. Steel to Nippon Steel. The order said the national security risks associated with the Japanese company's acquisition could be "adequately mitigated" if the conditions set by the U.S. government are met. The takeover had support from U.S. Steel, its shareholders, and parts of its workforce and local communities. On Wednesday, David McCall, president of the powerful United Steelworkers union, which has persistently opposed the buyout, said in a statement, "We will continue watching, holding Nippon to its commitments." Despite opposition from both Biden and Trump, Nippon Steel continued to pursue full ownership of U.S. Steel, arguing that partial control could risk the leakage of its cutting-edge technologies. Founded in 1901, U.S. Steel was once a symbol of American economic prowess, but it has struggled to keep up with competition from Chinese and other foreign rivals. Facing a shrinking domestic market due to a declining population, Nippon Steel has increasingly focused on overseas expansion, carrying out mergers and acquisitions in countries such as India and Thailand. Its goal is to boost annual steel output to 100 million tons.
Japan Today
3 hours ago
- Japan Today
Nippon, U.S. Steel say they have completed partnership deal
A year and a half after announcing the original merger, Nippon and US Steel said they had closed their partnership deal, affecting legacy industrial sites such as those near Pittsburgh By John BIERS Nippon Steel and U.S. Steel announced Wednesday they have completed a long-debated transaction granting the U.S. government a "golden share" -- a veto-like power over the Japanese company's strategic decisions. The agreement modifies a transaction originally announced in December 2023 in which Nippon Steel agreed to acquire US Steel for $14.9 billion. But the outright acquisition of the iconic U.S. company sparked bipartisan political opposition, including from President Donald Trump. Trump, who railed against the proposed deal throughout the 2024 presidential campaign, last month announced a pivot, branding the revamped venture as a "planned partnership." And the U.S. government will now have a non-economic "golden share" that gives it a say on Nippon's plans for U.S. infrastructure and jobs. On Wednesday, U.S. Steel filed a notice with U.S. 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 U.S. Steel said in a joint press release. "The companies have also entered into a National Security Agreement with the U.S. Government, and U.S. Steel will issue a Golden Share to the U.S. Government." Nippon Steel has bought all common shares of U.S. Steel, completing the merger, a source close to the matter said Wednesday. Pennsylvania Senator Dave McCormick, a Republican, cheered the deal's closing, thanking Trump on X and calling the outcome "a massive victory for working families in the Mon Valley, our economy, our national security, and America's manufacturing future!" But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to "continue watching, holding Nippon to its commitments," according to a statement. "And we will use the most powerful tool workers have against global corporations: collective bargaining." Under the December 2023 transaction, Nippon agreed to pay $55 per share for U.S. Steel, an all-cash deal that included a 40 percent premium and pitched the combined company as the "best steelmaker with world-leading capabilities." While the transaction included a pledge to maintain the name U.S. Steel and the company's Pittsburgh headquarters, industry watchers expected an exodus of U.S. Steel executives. But after the deal sparked bitter opposition from the USW 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 a transaction that appeared for months to be on life support. In early January, shortly before leaving office, Biden blocked the transaction, saying that placing "one of America's largest steel producers under foreign control" could "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 Trump's election victory over Biden's vice president Kamala Harris might revive the deal's prospect. Besides agreeing to keep U.S. Steel's Pittsburgh headquarters and to maintaining U.S. production, the revamped deal's national security agreement calls for a majority of U.S. Steel's board to be U.S. citizens and for key leaders, including the CEO, to be U.S. citizens. The 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. The "golden share" does not entitle the U.S. government to dividends, nor does it require Washington to make investments in the company. Atlantic Council senior fellow Sarah Bauerle Danzman said the deal is not a nationalization of U.S. Steel because the government will not be involved in day-to-day management and "because the United States is not taking equity stakes away from owners." While the structure gives the government "extraordinary" influence, the mechanism could be difficult to enforce in a downturn if Nippon fails to comply, Danzman said. "How would the U.S. government compel Nippon to increase investments to its promised amount?" wrote Danzman, adding that Washington's enforcement options "are relatively weak here, especially if Nippon finds itself in a fragile economic position." © 2025 AFP
NHK
5 hours ago
- NHK
Nippon Steel CEO says firm will solidify position as world's leading steelmaker
Following the completion of Nippon Steel's deal to acquire US Steel, the two steelmakers released a joint statement. In it, Nippon Steel CEO Hashimoto Eiji said: "I am very pleased that the partnership between Nippon Steel and US Steel has been realized thanks to President Trump's historic and visionary decision. "... Building on our investment, the transfer of our advanced technologies, and the unwavering efforts of management and the employees of both companies, Nippon Steel is committed, together with US Steel, to solidifying its position as the world's leading steelmaker."
