Nippon Steel finalizes deal to make U.S. Steel wholly owned
KYODO NEWS - 35 minutes ago - 23:26 | All, Japan, World
Nippon Steel Corp. said Wednesday it has finalized a $14.1 billion deal to acquire United States Steel Corp. as a wholly owned subsidiary after U.S. President Donald Trump reversed his initial opposition and allowed the deal to proceed.
The move will give Japan's largest steelmaker, and the world's fourth-largest, greater access to the growing U.S. market for high-grade steel, with U.S. Steel issuing a golden share to the U.S. government that grants veto power over key management decisions.
"Together, Nippon Steel and U.S. Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities," the two companies said in a joint statement.
Nippon Steel said it has concluded a National Security Agreement with the U.S. government and pledged to invest around $11 billion by 2028 in the iconic but struggling Pittsburgh-based company.
Under the agreement, the U.S. president or a designated official will have the right to approve certain management decisions, including the closure or idling of U.S. Steel's existing manufacturing facilities in the United States.
Related coverage:
Trump effectively approves Nippon Steel's takeover of U.S. Steel
Trump says U.S. Steel controlled by him with "golden share"
Trump's steel tariff hike not raised in Japan-U.S. talks: negotiator
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