Trump secures golden share as Nippon Steel completes US Steel takeover

Japanese steel giant Nippon Steel has finalized its $14.9-billion acquisition of US Steel, ending an 18-month political and regulatory battle.

The deal is a win for President Donald Trump’s administration, which negotiated a “golden share” giving the U.S. government sweeping veto rights over company decisions.

Nippon Steel’s $55-a-share acquisition creates the world’s second-largest steelmaker by annual production capacity at 86 million tonnes, behind China Baowu. However, the World Steel Association and many industry analysts rank the combined company fourth, based on 2023 production figures of 60 million tonnes. ArcelorMittal and Ansteel would be above it. 

Nippon Steel is to make about $11 billion in new investments in US Steel by 2028, which includes an initial investment in a greenfield project that will be completed after 2028. The deal, which faced opposition from U.S. labour unions and political leaders including former president Joe Biden, was revived under Trump, who oversaw a new national security review.

That review suggested allowing the federal government to block key decisions such as plant closures, production cuts, or job relocations. The arrangement was first revealed in a weekend social media post by Commerce Secretary Howard Lutnick. 

 

US Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania. A majority of the members of US Steel’s board of directors will be U.S. citizens as well as key management personnel, including its CEO.

Nippon Steel’s chairman, Eiji Hashimoto, credited Trump for helping bring the deal to completion and said the merger marks a new era for the historic American steelmaker.

US Steel shares stopped trading at 8:30 a.m. ET on Wednesday after the acquisition.

Timeline

First proposed in December 2023, the deal was derailed when the Biden administration blocked it on national security grounds.

Legal action followed, but under the Trump administration, a new 45-day review was initiated by the Committee on Foreign Investment in the U.S. Nippon also hired former U.S. Secretary of State Mike Pompeo and engaged labour leaders to help steer the deal to completion amid strong political headwinds.

While the golden share was key to regulatory approval, it may raise concerns about future foreign interest in strategic U.S. assets.