Nippon Steel’s purchase of U.S. Steel closes, with big role for Trump.
Nippon Steel’s $14.9 billion acquisition of U.S. Steel closed on Wednesday, the companies said, confirming an unusual degree of power for the Trump administration after the Japanese company’s 18-month struggle to close the purchase.
Under the deal terms, Nippon bought 100% of U.S. Steel shares at $55 per share, as it first laid out in its December 2023 offer for the well-known and struggling steelmaker.
A press release on the filing also discloses details of a national security agreement inked with the Trump administration, which gives President Donald Trump the authority to name a board member as well as a non-economic golden share.
The inclusion of the golden share to win approval from the Committee on Foreign Investment in the U.S., which scrutinizes foreign investment for national security risks, could drive overseas investors away from U.S. companies, national security lawyers said on Monday.
The acquisition will give U.S. Steel $11 billion investment in investment through 2028, including $1 billion for a new U.S. mill that will increase by $3 billion in later years, as first reported by Reuters.
It will also allow Nippon Steel, the world’s fourth-largest steel company, to capitalize on a host of American infrastructure projects while its foreign competitors face steel tariffs of 50%. The Japanese firm also avoids the $565 million in breakup fees it would have had to pay if the companies had failed to secure approvals.
Nippon Steel said on Wednesday its annual crude steel production capacity is expected to reach 86 million tons, bringing it closer to Nippon Steel’s global strategic goal of 100 million tons of global crude steel production capacity.
Source: Globalbankingandfinance