Nippon Steel finalizes $14.9B deal for US Steel

Nippon Steel's $14.9 billion acquisition of US Steel signals a major shift in the global steel sector.

After 18 months of complex talks and political challenges, Nippon Steel has successfully concluded the $14.9 billion acquisition of U.S. Steel. Nippon, the world’s second-largest steel producer, paid $55 per share to complete the transaction.

Many U.S. political leaders and labor groups, including former President Joe Biden, were strongly opposed to the deal. Later on, it was revived, and the Trump administration initiated a fresh national security review. A main reason the deal was approved was the creation of a “golden share.” This provided the U.S. government with veto authority over important choices like closing plants, cutting production, or job relocations. With significant terms, the U.S. holds a golden share in U.S. Steel that helps protect the country, Pennsylvania, U.S. Steel workers, and American steel manufacturers. Under the agreement, U.S. Steel will keep its famous name and remain headquartered in Pittsburgh, Pennsylvania. The CEO, other important managerial positions, and most board members must be U.S. citizens. Nippon Steel intends to invest approximately $11 billion in U.S. Steel by 2028, which includes funding an important greenfield project that will be finished after that year. Eiji Hashimoto, the chairman of Nippon Steel, praised Trump for his help in completing the deal. He said that the merger will bring a new chapter for the historic American steelmaker.

By buying U.S. Steel, Japanese steel giant Nippon has expanded its annual steel production to 86 million tons. The deal marks a turning point in history and signals the beginning of a new phase of international steel sector consolidation.