President Donald Trump signed an executive order facilitating a Nippon Steel investment in U.S. Steel, contingent on compliance with a national security agreement. The agreement, which mandates around $11 billion in investments by 2028 and grants the U.S. government a “golden share” for safeguarding national security interests, was praised by both companies for its potential community and economic benefits.

Following a Department of Justice review and regulatory approvals, the partnership is expected to be finalized promptly. The specifics of the golden share mechanism and allocation of the investment remain undisclosed. White House spokesman Kush Desai highlighted the importance of preserving U.S. Steel in Pennsylvania for national and economic security.

Nippon Steel’s initial bid to acquire U.S. Steel faced delays due to national security concerns, eventually evolving into a $28 billion transaction, including plans for a new steel mill and commitments to retain U.S. Steel’s operations and headquarters. Despite past opposition from Trump and Biden, the deal gained traction with Trump’s return to the White House.

The proposed merger, scrutinized by the Committee on Foreign Investment in the United States, aims to mitigate potential national security risks through the national security agreement. While the agreement’s terms remain confidential, Trump retains the authority to take further action related to the investment.

Overall, the executive order sets the stage for a significant investment partnership between Nippon Steel and U.S. Steel, emphasizing the importance of economic growth, national security, and regulatory oversight in shaping the future of American steel production.