Nippon Steel says it will fully acquire US Steel

Nippon Steel and US Steel said in a statement that Trump has approved their "historic partnership," a year and a half after the 14-billion-dollar deal was first announced.

The firms will issue a "golden share" to the US government under a national security agreement, giving it veto rights over important decisions such as board appointments and mergers.

Trump on Friday issued an executive order overturning former President Joe Biden's decision that blocked the sale of US Steel to Nippon Steel.

The golden share will allow the US government to exercise influence over US Steel after the acquisition by Nippon Steel. Trump has emphasised that the Pittsburgh-based company would be under US control.

The national security agreement between the US government and the steelmakers calls for roughly 11 billion dollars in new investments by 2028.

"We look forward to putting our commitments into action to make American steelmaking and manufacturing great again," the firms said in their statement.

The two firms' combined crude steel output totalled about 58 million tons last year, ranking fourth in the world.

Biden issued an executive order in January demanding that the steelmakers "take all steps necessary to fully and permanently abandon" the deal within 30 days in principle. Trump signed his order scrapping Biden's decision before the Wednesday deadline for overturning it.

Trump had ordered a fresh national security review of the transaction by the Committee on Foreign Investment in the United States, or CFIUS. He said in Friday's order that the threat to US national security from the deal "can be adequately mitigated" on the condition that the firms conclude a national security agreement with Washington.

Nippon Steel first announced the deal in December 2023, a transaction approved by US Steel shareholders in April 2024.

But Trump said that year that he would immediately block the takeover once he returned to office, in a bid to win over voters ahead of the presidential election. Biden also expressed opposition to the deal.

[Copyright The Jiji Press, Ltd.]
Photo By Reuters