Trump approved Nippon Steel’s $14.9 billion takeover of U.S. Steel after 18 months of regulatory reviews, union opposition, and intense political scrutiny surrounding the foreign acquisition. This is reported by the railway transport news portal Railway Supply.

Trump approved Nippon Steel’s $14.9 billion takeover of U.S. Steel after 18 months of regulatory reviews, union opposition, and intense political scrutiny surrounding the foreign acquisition
A worker wears a helmet with The Nippon Steel logo, inside the plate rolling mill area at the company’s East Nippon Works Kimitsu Area plant in Kimitsu, east of Tokyo, Japan May 26, 2025. REUTERS/Issei Kato

He signed an executive order authorizing the deal on Friday, provided both companies signed a national security agreement with the U.S. Treasury. That agreement was finalized the same day.

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Trump Enables Strategic U.S.–Japan Steel Partnership

Both companies confirmed a commitment to invest $11 billion in U.S. operations by 2028. The agreement also includes governance guarantees, trade compliance, and domestic production requirements.

Nippon Steel will acquire 100% of U.S. Steel’s shares. A spokesperson in Tokyo confirmed the deal’s structure and highlighted its alignment with the firm’s global expansion goals.

Details about the “golden share” pledged to the U.S. government remain undisclosed. However, Senator David McCormick said it would allow Washington to veto critical decisions affecting U.S. Steel.

Trump-Backed Deal Sparks Japanese and American Optimism

Reuters reported Nippon Steel may inject another $3 billion into a new steel mill after 2028. This strengthens its position in the U.S. while enabling U.S. Steel to pursue infrastructure projects with fresh capital.

Trump’s decision also helped the Japanese company avoid a $565 million breakup fee, which would have applied if the deal collapsed.

Though some investors remain wary of short-term costs, Tokyo welcomed the approval. Economy Minister Yoji Muto said it would boost innovation and deepen U.S.–Japan industry ties.

Trump previously praised Nippon Steel at a rally on May 30, calling it a “great partner.” With Friday’s official endorsement, the companies can now proceed with their strategic transformation.

Source: www.reuters.com

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