Latest news with #Nippon-USSteel
Gulf Today
16 hours ago
- Business
- Gulf Today
Trump approves Nippon Steel's $14.9 billion purchase of US Steel
US President Donald Trump approved Nippon Steel's $14.9 billion bid for US Steel, capping a tumultuous 18-month effort by the companies that survived union opposition and two national security reviews. Trump signed an executive order saying the tie-up could move forward if the companies sign an agreement with the Treasury Department resolving national security concerns posed by the deal. The companies then announced they had signed the agreement, fulfilling the conditions of Trump's directive and effectively garnering approval for the merger. 'We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,' the companies said in the statement, thanking Trump. They added the agreement includes $11 billion in new investments to be made by 2028 as well as governance, production and trade commitments. Nippon Steel will buy a 100 per cent stake in US Steel, a spokesperson for the Japanese company in Tokyo said on Saturday. The steelmakers provided no detail on the 'golden share' they pledged to issue to the US government, raising questions about the extent of US control. ' 'US Senator David McCormick of Pennsylvania, where US Steel is headquartered, said last month the golden share would give the government veto power over key decisions relating to the American steel icon. Reuters has reported that Nippon Steel would invest an additional $3 billion for a new mill after 2028. The takeover will set up the ailing US firm to receive the critical investment, allowing Nippon Steel to capitalise on a host of American infrastructure projects while its foreign competitors face steel tariffs of 50 per cent. The Japanese firm also avoids the $565 million in breakup fees it would have had to pay if the companies had failed to secure approvals. For Nippon Steel, the world's fourth-biggest steelmaker, securing a foothold in the US is key to its global growth strategy. The US steel market, including high-grade steel, Nippon Steel's specialty, is growing amid rising global trade tensions. Still, some Nippon Steel investors are concerned about short-term financial pressure due to the scale of the additional investment commitment. The Japanese government, rushing to try to secure a trade deal with the US by the time Trump and Prime Minister Shigeru Ishiba meet at the Group of Seven summit starting on Sunday, applauded the Nippon-US Steel agreement. 'The government of Japan welcomes the US government's decision, as we believe this investment will enhance innovation capabilities in the US and Japanese steel industries and further strengthen the close partnership between our two countries,' Economy, Trade and Industry Minister Yoji Muto said in a statement on Saturday. Friday's announcement was hardly guaranteed, even if many investors had seen approval as likely after Trump headlined a rally on May 30 giving his vague blessing to an 'investment' by Nippon Steel, which he described as a 'great partner.' Shares of US Steel had dipped earlier on Friday after a Nippon Steel executive told Japan's Nikkei newspaper that the takeover required 'a degree of management freedom' to go ahead after Trump said the US would be in control with the golden share. The bid has faced opposition since Nippon Steel launched it in December 2023. After the United Steelworkers union came out against the deal last year, both then-President Joe Biden, a Democrat, and Trump, a Republican, expressed their opposition as they sought to woo voters in the presidential campaign in the swing state of Pennsylvania. Shortly before leaving office in January, Biden blocked the deal on national security grounds, prompting lawsuits by the companies, which argued the national security review they received was biased. The Biden White House disputed the charge. The steel companies saw a new opportunity in the Trump administration, which opened a fresh 45-day national security review into the proposed merger in April. But Trump's public comments, ranging from welcoming a simple 'investment' in US Steel by the Japanese firm to floating a minority stake for Nippon Steel, spurred confusion. While many investors saw approval as likely after Trump headlined a rally on May 30 giving his vague blessing to an 'investment' by Nippon Steel, which he described as a 'great partner', Friday's announcement was hardly guaranteed. The bid, first announced by Nippon Steel in December 2023, has faced opposition from the start. Both Democratic former President Joe Biden and Trump, a Republican, asserted last year that US Steel should remain US-owned, as they sought to woo voters ahead of the presidential election in Pennsylvania, where the company is headquartered. Reuters
AsiaOne
a day ago
- Business
- AsiaOne
Trump approves Nippon Steel's $19b purchase of US Steel, Money News
US President Donald Trump approved Nippon Steel's US$14.9 billion (S$19 billion) bid for US Steel on Friday (June 13), capping a tumultuous 18-month effort by the companies that survived union opposition and two national security reviews. Trump signed an executive order saying the tie-up could move forward if the companies sign an agreement with the Treasury Department resolving national security concerns posed by the deal. The companies then announced they had signed the agreement, fulfilling the conditions of Trump's directive and effectively garnering approval for the merger. "We look forward to putting our commitments into action to make American steelmaking and manufacturing great again," the companies said in the statement, thanking Trump. They added the agreement includes US$11 billion in new investments to be made by 2028 as well as governance, production and trade commitments. Nippon Steel will buy a 100 per cent stake in US Steel, a spokesperson for the Japanese company in Tokyo said on Saturday. The steelmakers provided no detail on the "golden share" they pledged to issue to the US government, raising questions about the extent of US control. US Senator David McCormick of Pennsylvania, where US Steel is headquartered, said last month the golden share would give the government veto power over key decisions relating to the American steel icon. Reuters has reported that Nippon Steel would invest an additional US$3 billion for a new mill after 2028. The takeover will set up the ailing US firm to receive the critical investment, allowing Nippon Steel to capitalise on a host of American infrastructure projects while its foreign competitors face steel tariffs of 50 per cent. The Japanese firm also avoids the US$565 million in breakup fees it would have had to pay if the companies had failed to secure approvals. For Nippon Steel, the world's fourth-biggest steelmaker, securing a foothold in the US is key to its global growth strategy. The US steel market, including high-grade steel, Nippon Steel's specialty, is growing amid rising global trade tensions. 'Great partner' Still, some Nippon Steel investors are concerned about short-term financial pressure due to the scale of the additional investment commitment. The Japanese government, rushing to try to secure a trade deal with the US by the time Trump and Prime Minister Shigeru Ishiba meet at the Group of Seven summit starting on Sunday, applauded the Nippon-US Steel agreement. "The government of Japan welcomes the US government's decision, as we believe this investment will enhance innovation capabilities in the US and Japanese steel industries and further strengthen the close partnership between our two countries," Economy, Trade and Industry Minister Yoji Muto said in a statement on Saturday. Friday's announcement was hardly guaranteed, even if many investors had seen approval as likely after Trump headlined a rally on May 30 giving his vague blessing to an "investment" by Nippon Steel, which he described as a "great partner." Shares of US Steel had dipped earlier on Friday after a Nippon Steel executive told Japan's Nikkei newspaper that the takeover required "a degree of management freedom" to go ahead after Trump said the US would be in control with the golden share. The bid has faced opposition since Nippon Steel launched it in December 2023. After the United Steelworkers union came out against the deal last year, both then-President Joe Biden, a Democrat, and Trump, a Republican, expressed their opposition as they sought to woo voters in the presidential campaign in the swing state of Pennsylvania. Shortly before leaving office in January, Biden blocked the deal on national security grounds, prompting lawsuits by the companies, which argued the national security review they received was biased. The Biden White House disputed the charge. The steel companies saw a new opportunity in the Trump administration, which opened a fresh 45-day national security review into the proposed merger in April. But Trump's public comments, ranging from welcoming a simple "investment" in US Steel by the Japanese firm to floating a minority stake for Nippon Steel, spurred confusion. [[nid:714421]]
Technical.ly
30-05-2025
- Business
- Technical.ly
Pittsburgh weekly roundup: Shapiro proposes $50M for innovation; Can the electric grid handle the heat?; A pause on student visas
This week in Pittsburgh, developers at PyCon give their take on AI software, an update on the Nippon-US Steel merger and more. • Governor Josh Shapiro visited Pittsburgh on Tuesday to announce his proposed budget would create a new $50 million PA Innovation program. It would include a one-time $30 million initiative to spur life sciences job growth and $20 million to provide annual funding to support large-scale innovation. [PA DCED] • Just one year of federal funding in Pennsylvania generates $5.2 billion in economic activity. Federal cuts to the National Science Foundation and National Institutes of Health are estimated to cause a $259 million loss for Allegheny County. [ • With scorching temperatures forecasted for the mid-Atlantic this summer and an increasing demand to power data centers for AI, Pennsylvania's grid operator said it will have an adequate supply of electricity, but that may fall short in an 'extreme planning scenario.' [WESA] • The Trump administration revoked $210 million in EDA Tech Hubs funding from six regions, including Philly. New funding rounds will open this summer with a national security focus. Pittsburgh has previously applied but wasn't selected. [ • The US Department of State's recent pause on international student visa interviews could affect thousands of students who attend Pittsburgh universities each year. The University of Pittsburgh and other local schools say it's too early to tell what the impact will be. [AP News/Pittsburgh Biz Times] • Pittsburgh workers' rights were in the spotlight this week. Union reps and local advocates spoke in strong support of a bill to expand paid sick leave at a City Council hearing Wednesday. Meanwhile, nurses at UPMC Magee-Womens Hospital announced plans to unionize. [WESA] 🗓️ On the Calendar • Join Pittsburgh's chapter of Pitch and Run on May 31 in the Strip District. Run (or walk) at this weekly meetup while connecting with other builders in the local ecosystem. [ Details here ] • Are you passionate about clean technology? Don't miss the Clean Tech Symposium at Chatham University's Eden Hall Campus on June 2. [ Attend ] • Learn about one of the most game-changing features coming to C++26 (reflection) with Pittsburgh C++ Meetup Group on June 4 in the Strip District. [ More info ] • What does the Pittsburgh of tomorrow look like? Share your thoughts and hear from local leaders, like the Democratic nominee for Mayor Corey O'Conner, at a June 4 event hosted by Pittsburgh Tomorrow. [ Register ] • The Pittsburgh Technology Council and PA CareerLink are teaming up to help displaced government workers find new jobs in PA. A virtual hiring event is happening June 5. [ Sign up ]
Yahoo
10-02-2025
- Business
- Yahoo
Is Nippon Steel buying US Steel a US national security risk?
The US and Japan have a close alliance, one that grew even stronger in recent years — except for one wrinkle: then-President Joe Biden's decision to block Japan-based Nippon Steel's bid to takeover US Steel. The move delighted the United Steelworkers union but divided his administration, triggering a heated debate about US investment policy, national security, and friendshoring. The issue reemerged in recent days, as President Donald Trump hosted Japanese Prime Minister Shigeru Ishiba and opened the door to a different deal that would see Nippon invest — but not purchase — the company, after indicating he would oppose the proposed takeover. Meanwhile, Nippon and US Steel are challenging Biden's veto in court. Todd Tucker, director of the industrial policy and trade program at the Roosevelt Institute, argues that the proposed acquisition risks US national security and that Biden was right to block it: 'Yes, [the deal is a national security risk] when one considers how Congress ordered presidents to consider 'security risks' under the Defense Production Act — which is less about imminent military threats, and more about the long-term maintenance of domestic capacities in strategic industries like steel. When the US is down to just a handful of steel blast furnaces left, it is legitimate to try to seek greater assurances for continuity of operations than if there were dozens or hundreds. In this case, the steelworkers union has long seemed more serious about continuing to invest in primary steel production than the selling or would-be acquiring companies.' Charlie Dent, former Republican congressman from Pennsylvania, argues that a takeover presents no national security risk and that the US steel industry will suffer without it: 'There are no real national security concerns in the Nippon-US Steel deal. Everyone knows Japan is a close ally and blocking the deal, I think, would be utterly shameful. The day before the Biden administration blocked the Nippon-US Steel, that same administration allowed an air-to-air missile defense system to be sold to Japan. They agreed to a foreign military sale, and for good reason, because Japan is a close national security partner and ally. It's absurd to suggest that Japan is a national security threat. Trump should reverse this decision. I think Donald Trump has an opportunity to save steelmaking jobs in Pennsylvania, because without this deal, I expect those plants — those big integrated plants in western Pennsylvania — to close at some point. And so I think Donald Trump could actually save the day if he permitted this agreement to go through because it would provide for a massive investment of fresh capital and state-of-the-art technology. We would be making steel better in Pennsylvania.'
