Trump approves Nippon Steel's takeover of US Steel

US President Donald Trump on June 13 approved Nippon Steel's acquisition of US Steel through an executive order, which requires the two companies to sign a "national security agreement" with the US government.

The approval potentially draws to a close Nippon Steel's multi-year efforts to acquire US Steel, after the Japanese steelmaker promised US control of the company, a development that emerged as a political flashpoint in the US.

Nippon Steel in 2023 had said it would acquire US Steel for $14 billion, but then-US President Joe Biden blocked the proposal, citing national security concerns and keeping control of American supply chains. The deal was again blocked by Trump when he assumed office in January.

Nippon Steel, in a July 14 statement, said that the company will make $11 billion in new investments by 2028, which includes the initial investment in a greenfield project that would be completed after 2028.

Trump approved the companies' "historic partnership that will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs," Nippon and US Steel said in a statement.

It also includes commitments related to governance, which has a "golden share" to be issued to the US government, along with domestic production and trade matters.

"Along with President Trump's Executive Order, the companies have completed the U.S. Department of Justice review process," the two companies said in a statement.

Other than producing multiple steel products, US Steel is also involved in iron ore and coke production, according to data from S&P Global Market Intelligence.

US Steel produced 14.18 million mt of steel in 2024, while Nippon Steel's output was 43.64 million mt, according to the World Steel Association.

A successful takeover would mean Nippon Steel inching closer to China's state-run Ansteel Group in production terms, the world's third-largest steel producer.