Nippon Steel Acquires US Steel: National Security Deal Closes
Nippon Steel Acquires US Steel: National Security Deal Closes
Nippon Steel’s $14.1 billion acquisition of US Steel has received conditional US approval, culminating in a deal creating the world’s second-largest steel producer. The agreement, initially blocked by the Biden administration, was greenlit by a Trump executive order contingent upon a national security agreement.
Key terms include a $14 billion investment by Nippon Steel through 2028 (including a new greenfield project post-2028 and a new steel mill), a “golden share” granting the US significant control measures, including board seats and leadership position requirements for US citizens. This golden share doesn’t represent equity ownership.
The deal, expected to close by June 18, also includes stipulations to maintain existing blast furnaces for a decade and potential bonuses for steelworkers. While the full security agreement remains undisclosed, the transaction is touted as a win for US national security and economic interests, potentially influencing ongoing US-Japan trade negotiations.
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