Trump Approves Nippon Steel’s $14.9B U.S. Steel Bid Under Strict Conditions
Trump Approves Nippon Steel’s $14.9B U.S. Steel Bid Under Strict Conditions
President Donald Trump has approved Nippon Steel’s $14.9 billion acquisition of U.S. Steel, but only after imposing stringent conditions to address national security concerns. The deal, initially met with opposition from both Trump and his predecessor, Joe Biden, will proceed following a tumultuous journey through regulatory hurdles and public pronouncements.
Trump’s executive order, released Friday, stipulates that the acquisition can move forward only if Nippon Steel meets specific, undisclosed conditions outlined in a separate agreement. The White House statement confirms that these conditions will mitigate national security risks. This news sent U.S. Steel shares soaring 3.5% in after-hours trading.
In a joint press release, both companies expressed gratitude for Trump’s decision, highlighting a commitment of $11 billion in new investments by 2028 and governance provisions including a “golden share” for the U.S. government. The precise level of control this golden share grants remains unclear.
The deal faced significant opposition since its announcement in December 2023. Both Biden and Trump, vying for votes in Pennsylvania (U.S. Steel’s home state), previously voiced support for keeping U.S. Steel under American ownership. Biden even blocked the deal earlier this year on national security grounds, prompting lawsuits from the involved companies who accused the Biden administration of bias. The Biden White House denied these allegations.
The Trump administration’s review of the merger, initiated in April, was marked by fluctuating public statements from the President. These ranged from welcoming Japanese investment to suggesting a minority stake for Nippon Steel, creating uncertainty regarding the deal’s ultimate fate. A recent court extension to allow further negotiations also contributed to the drama surrounding the announcement.
The original acquisition contract between Nippon Steel and U.S. Steel expires on June 18th, but the companies may extend this deadline. The approval, while a victory for both companies, underscores the significant national security considerations influencing major international business transactions.
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