Nippon Steels $15B purchase of US Steel closes with big role for Trump

Nippon Steel’s $14.9 billion acquisition of US Steel closed on Wednesday, the companies said, confirming an unusual degree of power for the Trump administration after the Japanese company’s 18-month struggle to close the purchase.Under the deal terms, Nippon bought 100% of US Steel shares at $55 per share, as it first laid out in its December 2023 offer for the well-known and struggling steelmaker.A press release on the filing also discloses details of a national security agreement inked with the Trump administration, which gives President Donald Trump the authority to name a board member as well as a non-economic golden share.Eiji Hashimoto, Nippon Steel’s Chairman and CEO, thanked Trump for his role, adding that “Nippon Steel is excited about opening a new chapter of US Steel’s storied history.”The measures agreed to represent an unusual level of control conceded by the companies to the government to save the deal, after a rocky path to approval spurred by high-level political opposition.The golden share gives the US government veto authority over a raft of corporate decisions, from idling plants to cutting production capacity and moving jobs overseas, as previewed in a weekend social media post by Commerce Secretary Howard Lutnick.The share also gives the government a veto over a potential relocation of US Steel’s headquarters from Pittsburgh, a transfer of jobs overseas, a name change, and any potential future acquisition of a rival business, the release shows.The inclusion of the golden share to win approval from the Committee on Foreign Investment in the US, which scrutinizes foreign investment for national security risks, could drive overseas investors away from US companies, national security lawyers said Monday.The acquisition will give US Steel $11 billion investment in investment through 2028, including $1 billion for a new US mill that will increase by $3 billion in later years, as first reported by Reuters.It will also al...