Latest news with #UnitedStatesSteel
Japan Times
11 hours ago
- Business
- Japan Times
Nippon Steel drops lawsuit against U.S. government after acquiring U.S. Steel
Nippon Steel is dropping a lawsuit against the United States government, chairman and CEO Eiji Hashimoto said as the company finalized its acquisition of United States Steel after an 18-month battle to complete the transaction. The suit has been rendered moot as a result of the successful purchase of the American steel-maker, Hashimoto said in reply to a question from The Japan Times after his meeting with trade minister Yoji Muto on Thursday evening. 'We were able to achieve our objective, so there is no longer a meaningful reason to continue that case — in a good sense,' he explained. A separate civil suit against a competitor and a union leader has not yet been dropped. Nippon Steel and U.S. Steel filed the lawsuit against the U.S. government in January to challenge former U.S. President Joe Biden's blocking of the transaction on national security grounds. They argued that the companies were denied due process and other rights, and claimed that the $14.9 billion transaction was blocked for political reasons. U.S. President Donald Trump, who had voiced opposition to the deal during his presidential campaign, reversed his predecessor's decision last week . He said the Japanese firm could buy the U.S. company if it signed a national security agreement with the U.S. government. Nippon Steel finalized the transaction on Wednesday. The civil suit alleges that United Steelworkers union President David McCall, Cleveland-Cliffs and Lourenco Goncalves, CEO of Cleveland-Cliffs, engaged in 'illegal and coordinated actions' to sabotage the U.S. Steel acquisition. Goncalves has dismissed Nippon Steel's claims, saying the accusations are "baseless." An outspoken critic of the Nippon Steel-U.S. Steel deal, Goncalves described Japan as 'evil' for 'teaching China how to dump steel.' In the lawsuit, he was accused of launching a 'public smear campaign' and 'trafficking in xenophobic stereotypes' about foreign investors to kill the deal. Cleveland-Cliffs made an unsolicited bid in July 2023 to purchase U.S. Steel for $35 a share — later raised to $54, according to reports — in cash and stock. Nippon Steel made an all-cash offer of $55 a share. McCall, who has been vocal in his opposition to the Nippon Steel transaction from the outset, said in a Wednesday statement that the union will 'continue watching' and hold Nippon Steel to its commitments. 'We will decide how to proceed after closely observing how the other parties respond, so no final decision has been made on that yet,' Hashimoto said of the civil lawsuit.
Straits Times
2 days ago
- Business
- Straits Times
Nippon Steel closes acquisition of US Steel to end 18-month saga
TOKYO – Nippon Steel closed its US$14.1 billion (S$18.1 billion) acquisition of United States Steel bringing an end to a bruising takeover battle that was embroiled in American politics for months until finally gaining support from US President Donald Trump. The transaction closes exactly 18 months after the two steelmakers first announced their surprising tie-up, a timeline veteran traders called one of the most unique they've ever witnessed. The controversial deal weathered two presidential administrations, union opposition, an expensive lobbying campaign and two US security panel reviews. 'This has been an unprecedented situation that got completely politicised – the fact that the union was so vocal, but presidential candidates too? That's never happened before,' said Wolfe Research analyst Timna Tanners, who has covered the industry for two decades. 'Steel was the discussion at people's kitchen tables, which probably hasn't happened for a while, but in the end, it happened exactly how it should have.' Nippon Steel's US$55-a-share acquisition creates the world's second-largest steelmaker and turns the combined entity into a formidable competitor within the American steel industry. The companies struck a conditional deal with the Trump administration on June 13 that saw the Japanese steelmaker agree to invest an additional US$11 billion in the Pittsburgh-based producer, giving them the green light to close a transaction first announced in mid-December 2023. The biggest winners may have been US Steel investors who held onto their stock through the roller-coaster ride that saw shares sink as low as US$26.92 at one point – less than half Nippon Steel's offer. One top investor was Florida-based hedge fund Pentwater Capital Management, which held more than US$1 billion in stock. 'I'm wearing my US Steel shirt today,' Pentwater Capital's founder, Mr Matthew Halbower, said in a June 18 interview. 'In the end, sanity prevailed.' Nippon Steel in the end offered enough concessions to Mr Trump that made it nearly impossible for his administration not to approve the combination. Most eye-opening were promises by the steelmakers to give the US president direct say in a number of decision-making scenarios for the American steelmaker in perpetuity. Nippon Steel and US Steel struck a National Security Agreement with the US, in which US Steel will issue a so-called golden share to the government. The golden share gives consent rights to the US president concerning reductions in capital investments, changing US Steel's name and headquarters, redomiciling outside the US, transferring jobs or production outside the US, acquisitions and decisions to close or idle existing facilities. Nippon Steel's concessions and added investments helped clinch Mr Trump's support of a takeover he opposed even before he became president. Throughout 2024's election campaign, Mr Trump had repeatedly said he was against foreign ownership of US Steel – a position he shared with then-President Joe Biden. Mr Biden blocked Nippon Steel's takeover in early January, arguing that the deal would 'place one of America's largest steel producers under foreign control and create risk for our national security and our critical supply chains'. His decision came after the case was referred to him by a US security panel review. As the two steelmakers sought last-ditch efforts to rescue their transaction, the newly elected Mr Trump started showing a willingness for the White House to revisit the transaction. On April 7, Mr Trump ordered another security review of the potential sale, directing the Committee on Foreign Investment in the United States to file a report within 45 days. Weeks later, Mr Trump touted a 'planned partnership' between the two companies, citing an investment and partial ownership, but under US control. Nippon Steel, with its biggest foreign purchase to date, is making a bet on a new market for its high-end specialty steel – one that is intended to help the industrial heavyweight diversify away from shrinking demand at home and to help it cope with competition from low-cost Chinese exports. Leadership of the influential United Steelworkers union, which represents workers at US Steel plants, opposed the deal from the start. USW President David McCall held significant influence over Mr Biden's decision on whether to block the deal as the then-president saw union and blue-collar votes as central to his ability to win the pivotal swing state of Pennsylvania in his re-election campaign. That power began to wane, however, after Mr Trump won the election, and rank-and-file union members voiced a highly vocal split with leadership in support of the deal. Mr Trump's administration listened to those members, including United Steelworkers Local 2227 Vice President Jason Zugai who acted as the defacto head of the faction wanting Nippon Steel's bid approved. Union leadership remains steadfast in its opposition to the transaction even after its closure, with Mr McCall highlighting the unprecedented presidential control over the company. 'It finally found acceptance by President Donald Trump, who now, through his 'golden share', has assumed a startling degree of personal power over a corporation,' Mr McCall said in a statement. 'We will continue watching, holding Nippon to its commitments.' BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Associated Press
2 days ago
- Business
- Associated Press
APi Group Set to Join S&P MidCap 400
NEW YORK, June 18, 2025 /PRNewswire/ -- APi Group Corp. (NYSE: APG) will replace United States Steel Corp. (NYSE: X) in the S&P MidCap 400 effective prior to the opening of trading on Tuesday, June 24. Nippon Steel Corp. (TSE: 5401) acquired United States Steel in a deal that closed today. Following is a summary of the changes that will take place prior to the open of trading on the effective date: For more information about S&P Dow Jones Indices, please visit ABOUT S&P DOW JONES INDICES S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit FOR MORE INFORMATION: S&P Dow Jones Indices [email protected] Media Inquiries [email protected] View original content: SOURCE S&P Dow Jones Indices
Japan Forward
4 days ago
- Business
- Japan Forward
With US Steel Buyout a Go, Let's Talk About the Golden Share
Nippon Steel and US Steel, a major American steel manufacturer, announced on June 13 that their deal had been approved by the United States government. President Donald Trump signed an executive order approving the deal on the same day. Approval of the acquisition was contingent upon Nippon Steel entering into a "National Security Agreement" with the US government. Under the agreement, the US government will be issued a "golden share." It gives the president veto power over vital US Steel management issues that might impact national security. The golden share only provides the President with veto power. At the same time, the government will not have any financial stake in the company. Nippon Steel will be allowed to hold 100% of the common shares of US Steel, making it a wholly owned subsidiary. The acquisition is expected to be completed quickly. Screenshot of the landing page for the United States Steel (US Steel) website (screenshot verified April 15, 2025) For the two companies, expansion of scale is imperative to counter Chinese steelmakers. Currently, China accounts for the majority of the world's crude steel production. The new tie-up of Japanese and American steel makers is also highly significant in terms of economic security since Japan and the US are allies. We welcome the US government's approval of the deal. Steel is required for building warships and other defense assets. Therefore, ensuring a domestic supply is considered essential from a security perspective. For that reason, the US government has protected steel as an important industry. However, it cannot be denied that long-standing protectionist policies have stalled technological innovation and capital investment in the US steel industry. This is a cause behind its reduced international competitiveness. As approved, the deal calls for Nippon Steel to invest about $11 billion USD (about ¥1.6 trillion JPY) in US Steel by 2028. The money will be used for updating outdated facilities and equipment, along with building new steel plants. Since Nippon Steel's demand that US Steel become a wholly owned subsidiary has been met, it will now be in a position to provide advanced technologies. Prominent among those are electromagnetic steel sheets for electric vehicles. It should also further the development of the American steel industry. Nonetheless, a series of actions taken by the US government along the way have left considerable fallout. President Trump speaks at a rally in May, held at one of US Steel's major factories Pennsylvania. (©Kyodo) The proposed acquisition was first announced in December 2023. However, in the runup to the 2024 presidential election, then-President Joe Biden and presidential candidate Donald Trump announced their strong opposition. Biden issued an order banning the deal on January 3, citing national security concerns. However, he never clearly explained why acquisitions by companies in allied countries should be a security concern. His stance must be judged as nothing but unjustified political intervention. Even now, the details of Nippon Steel's national security agreement as a condition of approving the acquisition, and the scope of the President's golden share veto power, have yet to be clarified. President Trump has said, however, "We have a golden share, which I control, our president controls." In order for the acquisition to achieve optimum results, this mechanism should not overly bind the management judgment of Nippon Steel. (Read the editorial in Japanese .) Author: Editorial Board, The Sankei Shimbun
Yahoo
4 days ago
- Business
- Yahoo
US Steel Stock Surges With Nippon Steel Set to Complete Acquisition
United States Steel shares are jumping in premarket trading Monday, as the Pittsburgh-based company's takeover by Japan's Nippon Steel looks set to close following the deal's approval by President Donald Trump. Trump issued an executive order on Friday green lighting Nippon Steel's takeover of U.S. Steel after the companies signed a national security agreement, which included the issuance of a so-called golden share to Washington. Former President Joe Biden blocked the $14.1 billion takeover by the Tokyo-based steelmaker in the final days of his presidency, citing national security States Steel (X) shares are jumping in premarket trading Monday, as the Pittsburgh-based company's takeover by Japan's Nippon Steel looks set to close following approval by President Donald Trump. Trump issued an executive order on Friday green lighting Nippon Steel's takeover of U.S. Steel after the companies signed a national security agreement, which included the issuance of a so-called golden share to Washington. The companies didn't elaborate on what the golden share would entail. In a post on X over the weekend, Commerce Secretary Howard Lutnick said the golden share "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.' The golden share prevents U.S. Steel from many actions without the president's approval—such as moving the headquarters out of Pittsburgh, transferring jobs outside the U.S., or changing its name, Lutnick wrote. The national security agreement also provided for approximately $11 billion in new investments to be made by the companies by 2028. Former President Joe Biden blocked the $14.1 billion takeover by the Tokyo-based steelmaker in the final days of his presidency, citing national security concerns. The companies said they have received all the needed regulatory approvals, and "the partnership is expected to be finalized promptly." U.S. Steel shares are gaining 5% in premarket trading and have gained more than 50% this year entering Monday. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
