Nippon Steel closes $14.9 billion deal to acquire U.S. Steel, significant Trump involvement.

From Yahoo Finance: 2025-06-18 09:05:00

Nippon Steel closed a $14.9 billion deal to acquire U.S. Steel, giving President Trump significant control over the steelmaker. The agreement includes a national security agreement granting Trump authority and a non-economic golden share to safeguard America’s interests, thanking Trump for his role in the deal.

The deal faced challenges and required significant concessions to gain approval. The inclusion of the golden share, giving the U.S. government veto power over corporate decisions, drew concerns from national security lawyers. The United Steelworkers union expressed opposition, citing Trump’s unprecedented level of control over the corporation.

Nippon Steel’s acquisition of U.S. Steel secures a foothold in the U.S. market, with plans for $11 billion in investments and an increase in production capacity. The deal allows Nippon Steel to capitalize on American infrastructure projects and avoid significant breakup fees. The annual crude steel production capacity is expected to reach 86 million tons, inching closer to the company’s global goal.

The deal faced uncertainty with opposition from the United Steelworkers union and political figures like President Biden. Trump’s support at a rally in May provided hope for approval, leading to the signing of an executive order granting permission for the merger. The rocky path to closing the deal involved legal challenges and a national security review, culminating in the acquisition’s completion.

Read more: Nippon Steel’s purchase of U.S. Steel closes, with big role for Trump