Japan's Nippon Steel Finalizes Major U.S. Steel Deal
(MENAFN) Media has reported that Japan’s largest steelmaker, Nippon Steel, finalized its $14.1 billion purchase of US Steel on Wednesday, concluding a protracted 18-month negotiation process.
As part of the agreement, Nippon Steel will take full ownership of US Steel’s common stock. In a key provision of the National Security Agreement signed with the U.S. government and US Steel, the American firm will retain a “golden share.”
Nippon Steel disclosed the successful close of the deal on Wednesday. US Steel also released a statement confirming the transaction had been completed.
The announcement follows a major political reversal: just days earlier, President Donald Trump overturned a previous decision by former President Joe Biden that had blocked the merger.
This acquisition significantly boosts Nippon Steel’s global position. Already Japan’s biggest and the world’s fourth-largest steel producer, the deal increases its annual crude steel output from 43.64 million tons to 57.82 million tons—bringing it much closer to China’s Ansteel Group, which produced 59.55 million tons in 2024.
Under the terms of the agreement, Nippon Steel has committed to injecting $11 billion into the U.S. economy by 2028. This includes the development of a new facility, though its completion is expected after 2028.
The acquisition plan was first made public in December 2023, but it soon encountered pushback from the United Steelworkers union and became entangled in political controversies amid the U.S. election cycle.
In January, President Biden issued an executive order halting the deal, prompting both companies to take legal action against his administration.
The finalized deal also comes on the heels of Trump’s decision to raise tariffs on all steel imports to 50%, up from the earlier 25%—a move that adds further weight to the geopolitical and economic implications of this acquisition.
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