Nippon Steel successfully completed its $14.9 billion acquisition of US Steel, marking the end of an 18-month struggle to finalize the purchase. The deal involved Nippon acquiring 100% of US Steel shares at $55 per share, as initially proposed in December 2023. Notably, the transaction also included a national security agreement with the Trump administration, granting Donald Trump the authority to appoint a board member and hold a non-economic golden share.

Eiji Hashimoto, Nippon Steel’s chairman and CEO, expressed gratitude to Trump for his involvement, stating that the acquisition opens a new chapter in US Steel’s history. The agreement reflects a significant level of control granted to the government to secure approval amidst political opposition. The golden share gives the US government veto power over key corporate decisions, such as plant closures, production cuts, job relocations, and potential acquisitions.

The acquisition is set to inject $11 billion in investments into US Steel by 2028, including funding for a new US mill and infrastructure projects. This move positions Nippon Steel to leverage American infrastructure opportunities while sidestepping steel tariffs faced by its competitors. By expanding its annual crude steel production capacity to 86 million tons, Nippon Steel edges closer to its global production target of 100 million tons.

The approval process faced challenges, with initial opposition from the United Steelworkers union and conflicting stances from political figures like Biden and Trump. Ultimately, after a fresh national security review initiated by the Trump administration, the deal was finalized through an executive order granting the necessary permissions.