US Steel sale to Nippon Steel finalizes with unusual power granted to Trump

US Steel sale to Nippon Steel finalizes with unusual power granted to Trump
US Steel sale to Nippon Steel finalizes with unusual power granted to Trump

Japanese firm Nippon Steel has completed its long-sought takeover of US Steel, after agreeing to yield unusual control to the US government.

According to BBC, Nippon's $14.9bn (£11bn) purchase of the smaller American company, will create one of the world's biggest steelmakers and turns Nippon into a major player in the US.

The plan, first announced in 2023, had been seen as a lifeline for the storied but struggling 124-year-old US Steel.

But the deal ran into trouble during last year's presidential election, when US President Donald Trump and his Democratic opponents said they were concerned about the foreign acquisition of one of the last major steel producers in the US.

However, Trump reversed his stance, after Nippon made concessions which the President said had satisfied his national security concerns.

He gave the official green light to the deal in an executive order on Friday.

Nippon agreed to pay $55 per share and take on the company's debt, a deal worth $14.9bn together.

It said it had also promised the government it would invest $11bn in US Steel by 2028, including a new facility that would be completed after that year.

It also granted the US government a "golden share" in the company, giving the government say over key decisions, including the transfer of jobs or production outside of the US, and certain calls to close or idle factories.

Nippon also committed to maintain its headquarters in Pittsburgh, Pennsylvania and install US citizens to key management positions including its chief executive and the majority of its board.

"This partnership ensures that US Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania, and that it will continue to be mined, melted, and made in America for generations to come," Nippon and US Steel said in a statement as shares in US Steel stopped trading.

Trump has made protections for the steel industry a key part of his economic agenda, raising tariffs on imports of the metal to 50% to benefit American producers.

Related
Read more : World

Blue Lagoon spa in Iceland evacuated amid volcano eruption

Blue Lagoon spa in Iceland evacuated amid volcano eruption
Volcanic explosion in Iceland forces authorities to make quick decision as town and renowned geothermal spa receives evacuation notice

Spanish mountain rescue teams hunt for missing American hiker in Pyrenees

Spanish mountain rescue teams hunt for missing American hiker in Pyrenees
Authorities discovered Henderson’s car in Torla, a town to the west of the national park

National Hot Dog Day 2025: Best deals to celebrate this occasion

National Hot Dog Day 2025: Best deals to celebrate this occasion
Here are a few free and discounted hot dog offers you shouldn't miss

Guinness owner Diageo CEO Debra Crew steps down amid market struggles

Guinness owner Diageo CEO Debra Crew steps down amid market struggles
World’s biggest spirits maker, Diageo CEO Debra Crew, departs after two years as the company battles tariffs

Michelle, Barack Obama address divorce rumours with humour

Michelle, Barack Obama address divorce rumours with humour
Barack Obama pokes fun at divorce rumours on wife Michelle Obama’s Podcast

Cuban labour minister steps down after backlash over beggars comments

Cuban labour minister steps down after backlash over beggars comments
Cuban Minister for Labour Marta Elena Feitó Cabrera resigns over controversial remarks about beggars

Lion cub cuddles with afternoon tea in China spark outrage

Lion cub cuddles with afternoon tea in China spark outrage
Chinese restaurant offers customers lion cub cuddles with $150 afternoon tea

Labubu makers Pop Mart forecast 350% profit surge in 2025

Labubu makers Pop Mart forecast 350% profit surge in 2025
Pop Mart International’s share slides by over 6% following a strong earnings forecast