Nippon Steel has completed the $14.9bn (Y2.17trn) acquisition of US Steel to create a world-leading steelmaker with advanced technologies and manufacturing capabilities.
The finalised transaction is in line with the merger agreement previously outlined by the companies in December 2023.
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This strategic partnership is expected to increase Nippon Steel Group’s annual crude steel production capacity to 86 million tonnes (mt), advancing towards its strategic goal of 100mt.
Additionally, this collaboration is set to protect and generate more than 100,000 jobs through significant investments in the US, impacting several states including Pennsylvania, Indiana, Arkansas, Minnesota and Alabama.
Additionally, a National Security Agreement (NSA) has been established, granting the issuance of a ‘golden share’ to the US Government.
Under the NSA, Nippon Steel has committed to investing approximately $11bn in US Steel by 2028, which includes funding for a greenfield project to be completed post-2028.
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By GlobalDataThe NSA outlines the maintenance of US Steel’s headquarters in Pittsburgh, Pennsylvania, and ensuring that a majority of US Steel’s board members and key management personnel, including the CEO, are US citizens.
The agreement also stipulates that US Steel will preserve its capacity to produce and supply steel from its US facilities to meet domestic demand and will retain autonomy in trade actions under US law.
Nippon Steel representative director chairman and CEO Eiji Hashimoto said: “I am very pleased that the partnership between Nippon Steel and US Steel has been realised thanks to President Trump’s historic and visionary decision.
“Nippon Steel is excited about opening a new chapter of US Steel’s storied history. Building on our investment, the transfer of our advanced technologies, and the unwavering efforts of management and the employees of both companies, Nippon Steel is committed, together with US Steel, to solidifying its position as the world’s leading steelmaker.”
The US Government, through the golden share, will have rights such as appointing an independent director and consent rights on specific matters.
This will include investment commitments, changes to US Steel’s name and headquarters, and decisions regarding production, acquisitions and closures.
US Steel CEO Dave Burritt said: “This is a momentous day for our country, our communities and the American steel industry. Thanks to President Trump’s bold leadership, American workers secured the best possible deal. US Steel will remain rooted in the US and continue to call Pittsburgh home.
“Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology and the creation of good-paying jobs across the US.”
Citi, Ropes & Gray, PJT Partners and Akin Gump Strauss Hauer & Feld served as advisors to Nippon Steel, while Barclays Capital, Goldman Sachs, Evercore, Milbank, Covington & Burling and Wachtell, Lipton, Rosen & Katz advised US Steel.
Earlier this year, President Trump stated that the US will maintain control over US Steel as it enters a partnership with Nippon Steel.
