Greenlight follows a national security deal with $11 bn investment pledge, governance commitments, and a “golden share” for the US government.
US President Donald Trump has approved Nippon Steel’s $14.9 billion acquisition of US Steel, concluding an 18-month process marked by union resistance and two national security reviews.
As per a Reuters report, Trump signed an executive order allowing the deal to proceed after the companies entered an agreement with the US Treasury Department addressing national security concerns. The companies confirmed they had signed the agreement, meeting the conditions of Trump’s directive and securing formal clearance.
“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in a joint statement, thanking Trump.The agreement includes $11 billion in investments by 2028, as well as governance, production and trade commitments. The companies also said a golden share would be issued to the US government, without providing further detail.According to an earlier Reuters report, Nippon Steel plans to invest an additional $3 billion for a new mill after 2028.
The takeover enables US Steel to receive fresh investment and allows Nippon Steel to participate in infrastructure projects in the US, while foreign competitors face steel tariffs of 50 per cent. The deal also waives a $565 million breakup fee that Nippon Steel would have had to pay if approvals were not secured.
“Great partner”
Although Trump had described Nippon Steel as a “great partner” during a rally on 30 May, the outcome remained uncertain. Earlier on Friday, shares of US Steel fell after a Nippon executive told Japanese daily Nikkei that the takeover required “a degree of management freedom,” following Trump’s remarks that the US would maintain control through a golden share.Nippon Steel first announced its bid in December 2023. From the outset, the deal faced political pushback. Both former President Joe Biden and Trump had said US Steel should remain US-owned, amid efforts to appeal to voters in Pennsylvania, where the company is based. Biden blocked the deal on national security grounds in January, shortly before leaving office. The companies filed lawsuits challenging the decision, alleging bias in the review process — a claim the Biden administration denied.Trump’s administration, which took office on 20 January 2025, launched a new 45-day national security review in April. Conflicting statements from Trump about the nature of the investment and control structure added uncertainty until Friday’s announcement. The approval now clears the path for the deal to be finalised, pending any remaining administrative steps.
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