Released June 17, 2025 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. President Donald Trump has cleared the way for Japan-based Nippon Steel Corporation (Tokyo) to acquire United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania) in what Trump called a partnership between the two companies that will lead to billions of dollars in new investments in U.S. Steel. However, the full terms of the deal remained unclear.
"Along with President Trump's Executive Order, the Companies have completed the U.S. Department of Justice review process," Nippon and U.S. Steel said in a joint press release. "With those approvals, all necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly."
They said the agreement includes about $11 billion in new investments by 2028, including "the initial investment in a greenfield project that would be completed after 2028." A national security agreement (NSA) for the deal includes "commitments related to governance (including a Golden Share to be issued to the U.S. Government), domestic production, and trade matters."
Nippon Steel first made a $14.9 billion offer to take over U.S. Steel as a wholly owned subsidiary 18 months ago, but the proposed acquisition was initially blocked by then-president Joe Biden and then mired under a natural security review under the newly-elected Trump administration. Trump initially was against the buyout but later opted for an alternative: a partnership and a "golden share" that gave the federal government control over aspects of the new entity.
While it remains to be seen whether the U.S. government would acquire an ownership stake as part of its "golden share" in any finalized deal, a Nippon company spokesperson reiterated over the weekend the company still planned to acquire 100% of U.S. Steel's shares.
In a Saturday social media post on X, U.S. Commerce Secretary Howard Lutnick provided more information on the terms of the "Golden Share."
"The Golden Share held by the United States in U.S. Steel has powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of U.S. Steel, and U.S. manufacturers that will have massively expanded access to domestically produced steel."
According to Lutnick, the following things cannot occur without approval from Trump or his designee:
"Last week, the publicly identified investments were claimed to be more than $14 billion. This week, that's dropped to $11 billion. Where are the investments going to be made and can we really count on them? And, while there is a claimed 'golden share,' what can we expect from Nippon's leadership in Japan which continues to build up overcapacity in steel globally and has been charged again with dumping by the Department of Commerce just weeks ago?"
For more information on the timeline of the Nippon-U.S. Steel deal, see June 3, 2025, article - Trump to Raise Steel Tariffs Again, Touts U.S. Steel-Nippon 'Partnership' and January 6, 2025, article - Biden Blocks Nippon Steel's U.S. Steel Acquisition.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"Along with President Trump's Executive Order, the Companies have completed the U.S. Department of Justice review process," Nippon and U.S. Steel said in a joint press release. "With those approvals, all necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly."
They said the agreement includes about $11 billion in new investments by 2028, including "the initial investment in a greenfield project that would be completed after 2028." A national security agreement (NSA) for the deal includes "commitments related to governance (including a Golden Share to be issued to the U.S. Government), domestic production, and trade matters."
Nippon Steel first made a $14.9 billion offer to take over U.S. Steel as a wholly owned subsidiary 18 months ago, but the proposed acquisition was initially blocked by then-president Joe Biden and then mired under a natural security review under the newly-elected Trump administration. Trump initially was against the buyout but later opted for an alternative: a partnership and a "golden share" that gave the federal government control over aspects of the new entity.
While it remains to be seen whether the U.S. government would acquire an ownership stake as part of its "golden share" in any finalized deal, a Nippon company spokesperson reiterated over the weekend the company still planned to acquire 100% of U.S. Steel's shares.
In a Saturday social media post on X, U.S. Commerce Secretary Howard Lutnick provided more information on the terms of the "Golden Share."
"The Golden Share held by the United States in U.S. Steel has powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of U.S. Steel, and U.S. manufacturers that will have massively expanded access to domestically produced steel."
According to Lutnick, the following things cannot occur without approval from Trump or his designee:
- Relocate U.S. Steel's headquarters from Pittsburgh, Pennsylvania
- Redomicile outside the United States
- Change the name of the company from U.S. Steel
- Transfer production or jobs outside the United States
- Close or idle plants before certain timeframes other than normal course temporary idling for safety, upgrades, etc.
- Other protections regarding employee salaries, anti-dumping pricing, raw materials and sourcing outside the U.S., acquisitions, and more
- Reduce, waive, or delay the $14 billion of Near-Term investments into U.S. Steel.
"Last week, the publicly identified investments were claimed to be more than $14 billion. This week, that's dropped to $11 billion. Where are the investments going to be made and can we really count on them? And, while there is a claimed 'golden share,' what can we expect from Nippon's leadership in Japan which continues to build up overcapacity in steel globally and has been charged again with dumping by the Department of Commerce just weeks ago?"
For more information on the timeline of the Nippon-U.S. Steel deal, see June 3, 2025, article - Trump to Raise Steel Tariffs Again, Touts U.S. Steel-Nippon 'Partnership' and January 6, 2025, article - Biden Blocks Nippon Steel's U.S. Steel Acquisition.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
