Japan's acquisition of U.S Steel has been finalized
Japan's colossal bargain: Nippon Steel acquires US Steel for $14.9 billion and promises a steel revival
That's right, folks! The Japanese steel titan, Nippon Steel, has officially sealed the deal with US Steel in a whopping $14.9 billion takeover. According to the joint press release, the American steel stalwart will retain its name and HQ in Pittsburgh, PA. The partnership will be strengthened with substantial investments in several US states in the steel industry.
Fast-forward 18 long months, the deal weathered opposition from US steel unions, a block by outgoing President Biden, and even created a stir during President Trump's campaign. After extensive negotiations and a national security review, the deal has been finalized.
Nippon agreed to buy 100% of US Steel shares for $55 per share, an offer initially tabled back in 2023. The agreement includes a commitment to invest $11 billion in US Steel over the next three years and meet US production demands for steel. The top brass of US Steel, including the CEO, will be US citizens to ensure American interests are prioritized.
Golden handcuffs: Cautious government oversight
Interestingly, the revamped deal includes a "golden share" that allows the US government veto power over certain corporate decisions, such as changes to plant operations, production capacity transfers, and job relocations, among others. This level of government control is an exceptional move and showcases the country's commitment to safeguarding domestic jobs and industries. The acquisition agreement also gives President Trump the authority to name a board member.
Wait, there's more!
The deal secured a total of about 100,000 jobs across various states like Pennsylvania, Indiana, Arkansas, Minnesota, and Alabama. US Steel's difficult days are far behind, as it prepares for a $14 billion investment to modernize its facilities, enhance production capacity, and maintain its position as a prominent domestic steel producer. With this investment, the combined company's annual steel production capacity is projected to reach 86 million tons, ranking it fourth in the world.
Nippon Steel's CEO, Eiji Hashimoto, expressed gratitude to President Trump and framed the acquisition as a "new chapter" for the ailing US steel giant. Meanwhile, US Steel CEO, Dave Burritt, stated that "American workers secured the best possible deal."
Finally, the deal marked the US Steel delisting from the New York Stock Exchange on the closing date. Thetakeover, initially approved by US Steel in 2023, was expected to help protect the struggling firm from intense competition on the global stage, including China.
Source: Rana Taha
Enrichment Data:The revamped acquisition of U.S. Steel by Japan’s Nippon Steel was finalized on June 18, 2025, after a prolonged legal and political saga that began with Nippon’s initial bid in late 2023. The deal was valued at approximately $14.2 billion, with Nippon Steel making a commitment to invest $14 billion in U.S. Steel operations, including $11 billion by 2028, to fuel production and modernization efforts[2][3][5].
- Nippon Steel acquired U.S. Steel by purchasing it for $55 per share, turning the American company into a Nippon subsidiary[2][3].
- The deal includes a pledge of substantial investments, such as $2.4 billion aimed at revitalizing facilities in Pennsylvania’s Mon Valley region and total planned investments of $14 billion to enhance U.S. Steel’s capacity[4][5].
- U.S. Steel’s headquarters will remain in Pittsburgh, Pennsylvania, preserving its American corporate identity.
- Leadership will primarily be American: the CEO will be a U.S. citizen, and the majority of the board of directors will be composed of U.S. citizens[5].
- The acquisition caused U.S. Steel to be delisted from the New York Stock Exchange on the closing date[5].
The government in America has granted approval for Nippon Steel's acquisition of US Steel, following a prolonged political saga, with the deal valued at approximately $14.2 billion. The acquisition agreement includes a commitment by Nippon Steel to invest $14 billion in US Steel operations, especially in modernization efforts.
Political discussions surrounding the acquisition were prominent, as the deal required government oversight due to the "golden share" that provides the US government veto power over certain corporate decisions, such as changes to plant operations, production capacity transfers, and job relocations. This level of control is unique in ensuring the safeguarding of domestic jobs and industries in America.
