Nippon Steel Acquires U.S. Steel Amid Political and Security Controls

Nippon Steel finalized its $14.9 billion acquisition of U.S. Steel, incorporating unique terms granting U.S. government control, including a golden share and board influence. The deal, approved by the Trump administration, faced political and security hurdles, but secures Nippon's investment and strategic goals in American infrastructure projects.

Nippon Steel has successfully closed its $14.9 billion acquisition of U.S. Steel, concluding an 18-month struggle marked by significant political and security challenges. The deal, approved under the Trump administration, allows for full control of U.S. Steel at $55 per share.

In a decisive move, Nippon Steel agreed to terms that give the U.S. government a golden share, allowing it veto power over critical corporate decisions, including plant idling and job transfers. This development aims to align with the national security concerns considered by the Committee on Foreign Investment in the U.S.

The acquisition is expected to bolster U.S. Steel's investments, particularly in infrastructure projects, and help Nippon Steel avoid potential penalties and fees. The completion of this deal marks a strategic advancement for Nippon Steel, eyeing a production target of 100 million tons of crude steel capacity worldwide.

(With inputs from agencies.)