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Nippon Steel Closes $14.1 Billion U.S. Steel Deal, Cedes Golden Share to U.S.

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Published Jul 3, 2025, 01:47 PM

Nippon Steel on 18 June completed its roughly $14.1 billion purchase of United States Steel, ending an 18-month process that drew intense political and national-security scrutiny. The Japanese group bought all outstanding shares for $55 each, making the 123-year-old American producer a wholly owned subsidiary and delisting it from the New York Stock Exchange.

Under a National Security Agreement negotiated with Washington, U.S. Steel issued a single “golden share” that gives the U.S. president veto power over decisions such as plant closures, relocating production overseas or cutting pledged capital spending. The pact also requires that the company keep its Pittsburgh headquarters, maintain its “Mined, Melted and Made in America” status, and ensure a board and senior management team dominated by U.S. citizens.

Nippon Steel committed to invest about $11 billion through 2028 to modernise U.S. Steel facilities and boost output of high-grade steel used in electric vehicles and other advanced industries. The combined company ranks as the world’s fourth-largest steelmaker by output, strengthening both partners’ ability to compete with dominant Chinese rivals amid elevated U.S. tariffs on imported steel.

The transaction went ahead only after President Donald Trump reversed a January order by his predecessor blocking the takeover. The resulting golden-share arrangement gives the White House an unusual degree of direct influence over a private enterprise, setting a potential precedent for future foreign acquisitions of strategically sensitive U.S. assets.

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Reuters Business

@ReutersBiz

WATCH: Nippon Steel pushed its $14.9 bln bid for US Steel over the line with big concessions. In this Viewsroom debate, Breakingviews columnists discuss the US government’s golden share and implications for others eyeing stateside expansion @AimeeDonnellan

Reuters

@Reuters

Nippon Steel pushed its $14.9 bln bid for US Steel over the line with big concessions. In this Viewsroom debate, Breakingviews columnists discuss the US government’s golden share and implications for others eyeing stateside expansion @AimeeDonnellan

The Globe and Mail

@globeandmail

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