- US govt retains ‘golden share’ to protect national interests
- Deal allows Nippon entry into US market sans 50% tariffs
Nippon Steel has completed its $14.9-billion acquisition of US Steel, purchasing all shares at $55 each. This landmark deal, finalised on 18 June, 2025, marks a significant expansion for Nippon Steel into the US market.
Key provisions
Acquisition details: Nippon Steel bought US Steel for $55 per share. The deal values US Steel at approximately $14.9 billion.
Government oversight: The US government will hold a “golden share” with veto power over key corporate decisions, ensuring national security interests are protected. This includes consent rights on specific matters like reducing committed capital investments, changing US Steel’s name and headquarters, and transferring production or jobs outside the United States.
Investment plans: Nippon Steel plans to invest approximately $11 billion in US Steel by 2028, focusing on modernising facilities and enhancing competitiveness. This investment aims to boost US Steel’s production capacity and ensure sufficient return on investment.
Global impact: The deal elevates Nippon’s crude steel capacity to 86 million tonnes (mnt), bringing it significantly closer to its 100-mnt ambition and enabling it to enter the US market without incurring the 50% tariffs imposed on other foreign steel producers.
US Steel will now operate as a wholly-owned subsidiary of Nippon Steel, retaining its name and headquarters in Pittsburgh, Pennsylvania. The deal has undergone anti-trust review by the US Department of Justice and investigation by the Committee on Foreign Investment in the United States.
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