Japan’s Nippon Steel Corporation announced that it has finalised its US$ 15 billion takeover US Steel Corporation, to form a world-leading steelmaker with “best-in-class technologies and manufacturing capabilities.”
The deal came after the Japanese company agreed to grant the US government a “golden share”, giving it a “veto-like” power over the company’s strategic decisions. This does not entitle the US government to any dividend payments, however, and will not require Washington to make investments in the company.
Nippon Steel confirmed that the “historic partnership” agreement allows US Steel to retain its “iconic name” and its headquarters in Pittsburgh, Pennsylvania, while “protecting and creating more than 100,000 jobs by unleashing unprecedented massive investments in US steelmaking, across US Steel’s footprint.”
Nippon Steel added that the two companies will “move forward together as the best steelmaker with world-leading capabilities,” run from both Tokyo and Pittsburgh. The combined Nippon Steel Group will have an annual crude steel production capacity of around 86 million tons, bringing it closer to Nippon Steel’s global strategic goal of 100 million tons.
The company confirmed that it will make approximately US$ 11 billion in new investments in US Steel by 2028, including an initial investment in a greenfield project that will be completed after 2028.
To protect US national security US Steel will continue to be run through its existing headquarters in Pittsburgh, with the majority of its board of directors and key management personnel, including its CEO, being US citizens. US Steel will maintain its capacity to produce and supply steel from its US production locations to meet market demand in the US. Nippon Steel has agreed it will not “prevent, prohibit, or otherwise interfere with US Steel’s ability to pursue trade action under US law.”
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By GlobalDataEiji Hashimoto, Nippon Steel’s Representative Director, Chairman and CEO, said in a statement: “I am very pleased that the partnership between Nippon Steel and US Steel has been realized 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.”
US Steel’s CEO, Dave Burritt, stated in his statement: “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 its 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.”
