USA Nippon Steel Seals U.S. Steel Takeover After Striking Unprecedented Deal with Trump

[Social Media]

 

Nippon Steel Seals U.S. Steel Takeover After Striking Unprecedented Deal with Trump

 

Nippon Steel has officially completed its $14.9 billion acquisition of U.S. Steel, finalizing a controversial deal that grants the U.S. government extraordinary oversight in exchange for presidential approval. The Japanese firm’s takeover of the iconic 124-year-old American company, which has long symbolized the country’s industrial strength, marks a significant milestone in the global steel industry, positioning Nippon as a dominant player in the U.S. market.

 

Originally announced in 2023, the acquisition was initially seen as a financial lifeline for the beleaguered U.S. steelmaker. However, the plan soon became a political flashpoint, encountering fierce resistance from both sides of the political spectrum during the 2024 U.S. presidential campaign.

 

Trump, however, endorsed the deal last week after receiving extensive concessions from Nippon. In an executive order signed on Friday, he gave formal approval, declaring that his concerns had been satisfied.

 

As part of the agreement, Nippon committed to purchasing all outstanding shares of U.S. Steel at $55 each and absorbing the company’s debt—bringing the total value of the transaction to $14.9 billion. In addition, the Japanese firm pledged to invest $11 billion into U.S. Steel by 2028, including the construction of a new facility expected to be completed after that year.

 

Perhaps most notably, Nippon agreed to grant the U.S. government a “golden share,” an unusual provision that gives federal authorities veto power over key corporate decisions. This includes the ability to block the transfer of jobs or production outside the country, as well as prevent closures or idling of domestic factories.

 

In a joint statement, Nippon and U.S. Steel confirmed, “This partnership ensures that U.S. Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania, and that it will continue to be mined, melted, and made in America for generations to come.” The companies also said the deal would “protect and create more than 100,000 jobs.”

 

To further solidify its American credentials, Nippon has agreed to keep the company’s headquarters in Pittsburgh and appoint U.S. citizens to critical leadership roles, including chief executive and a majority of the board.

 

Trump, who has long framed steel production as central to his economic policy, recently raised tariffs on steel imports to 50% to further protect American producers. He said his shift in position came after meetings with local leaders who warned that U.S. Steel would likely slash jobs if the Japanese investment fell through.

 

Despite presidential approval, the acquisition has not escaped criticism. The United Steelworkers union, which staunchly opposed the deal, accused former President Joe Biden of politicizing the national security review when he blocked the acquisition during the final weeks of his term. The companies responded with a lawsuit challenging Biden’s intervention.

 

David McCall, president of the United Steelworkers, criticized the final agreement, saying it “granted the president a startling degree of personal control” over the corporation. He warned that while public attention may now fade, the union would continue to monitor Nippon’s adherence to its promises. “However, our union will remain. We will continue watching, holding Nippon to its commitments,” McCall said.

 

  Adapted by ASEAN Now from BBC  2025-06-20

 

 

[Tug]

Wonder how much crypto they had to buy.

[HappyExpat57]

So Japan buying what was once the greatest company in the world is winning?

 

"US Steel was once a symbol of American industrial dominance. It was the most valuable company in the world and the first to be worth $1 billion, soon after its creation in 1901." - The World According To Grok

[JAG]

I suppose that Nippon Steel reckon that with US Steel protected by a tariff wall they can still make money from it within the US.

[blaze master]

2 hours ago, Tug said:

Wonder how much crypto they had to buy.

 

Somebody got fomo.

[TedG]

2 hours ago, HappyExpat57 said:

So Japan buying what was once the greatest company in the world is winning?

 

"US Steel was once a symbol of American industrial dominance. It was the most valuable company in the world and the first to be worth $1 billion, soon after its creation in 1901." - The World According To Grok

THis says it all

 

“What US Steel had was 1940s technology.”

 

https://www.cnn.com/2023/08/19/business/us-steel-steelmaking-history

[Thingamabob]

Sad, but no deal would have meant the complete demise of US steel and the loss of employment for it's workforce. 

[Srikcir]

14 hours ago, Social Media said:

it “granted the president a startling degree of personal control” over the corporation"

What could go wrong in the hands of a convicted criminal in corporate fraud and bankrupted every business venture that wasn't a scam for personal gain?

[mogandave]

13 hours ago, HappyExpat57 said:

So Japan buying what was once the greatest company in the world is winning?

 

"US Steel was once a symbol of American industrial dominance. It was the most valuable company in the world and the first to be worth $1 billion, soon after its creation in 1901." - The World According To Grok

With “once” being the key word. 

 

Nippon Steel is saving US Steel. No doubt as a leftist, you would rather it go out of business, being all dirty and whatnot. 

 

[SLOWHAND225]

11 hours ago, TedG said:

THis says it all

 

“What US Steel had was 1940s technology.”

 

https://www.cnn.com/2023/08/19/business/us-steel-steelmaking-history

 

Correct. The value in US Steel was the real estate. Most everything else is scrap