Trump Approves Nippon Steel-U.S. Steel Deal Under Strict National Security Conditions
Trump Approves Nippon Steel-U.S. Steel Deal Under Strict National Security Conditions
President Trump has signed an executive order greenlighting Nippon Steel’s investment in U.S. Steel, contingent upon a comprehensive national security agreement. The deal, valued at approximately $28 billion (including a new electric arc furnace planned post-2028), involves a significant $11 billion investment by 2028 and grants the U.S. government a “golden share,” effectively providing veto power over decisions impacting national security.
While specifics of the agreement remain undisclosed, it addresses previous national security concerns regarding steel production capacity and supply chain vulnerabilities. The agreement reportedly includes stipulations on maintaining U.S. Steel’s Pittsburgh headquarters, a majority-American board, and safeguards against actions detrimental to U.S. steel production. The deal concludes a lengthy CFIUS review process, which flagged potential national security risks deemed mitigatable under the terms of this agreement.
The golden share, a key element of the agreement, grants the U.S. government significant oversight, though the exact mechanics remain confidential. This arrangement follows a period of negotiations and increased investment pledges from Nippon Steel, aimed at addressing U.S. government concerns. The transaction’s finalization is expected imminently, pending successful execution of the national security agreement.
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