Nippon Steel Seals $14.9 B U.S. Steel Deal, Gives Washington Golden Share

Nippon Steel Corp. has completed its takeover of United States Steel Corp. for about $14.9 billion, paying $55 in cash for each outstanding share and ending U.S. Steel’s 123-year run as an independent public company. Trading in the U.S. Steel ticker ceased on the New York Stock Exchange on 18 June after the deal closed.

Under a national-security agreement that cleared the way for the acquisition, Nippon Steel pledged roughly $11 billion in new U.S. investments by 2028 and issued a single “golden share” that gives the U.S. president – currently Donald Trump – the power to appoint an independent director and veto decisions on plant closures, job transfers, capital spending cuts, name or headquarters changes and certain future transactions. U.S. Steel will keep its Pittsburgh headquarters, its brand and a board whose majority and chief executives must be U.S. citizens.

The accord capped an 18-month regulatory saga that saw then-President Joe Biden block the transaction on security grounds before lawsuits by the companies and a subsequent review persuaded President Trump to reverse the ban. The unusual level of government influence embedded in the golden share is expected to become a test case for future foreign acquisitions of strategic U.S. assets.

Strategically, the purchase lifts Nippon Steel’s annual crude-steel capacity to about 86 million tons, narrowing the gap with the world’s third-largest producer and supporting the Japanese company’s goal of reaching 100 million tons. Management says U.S. Steel’s facilities will benefit from high-grade technology transfers aimed at supplying domestic infrastructure and electric-vehicle demand amid heightened U.S. tariffs on imported steel.

Nippon Steel Chairman and CEO Eiji Hashimoto said the agreement secures management flexibility and profitability despite the government’s veto rights, calling the transaction “an efficient deal” that positions the enlarged group to compete globally while maintaining and expanding U.S. production and jobs.