Nippon Steel has finalized its acquisition of US Steel, a deal worth nearly $15 billion. The Japanese company first proposed the purchase over a year ago, but it was delayed by national security concerns and presidential politics in Pennsylvania, the home state of US Steel. The companies have agreed to a “golden share” provision that gives the federal government a say in some matters, including changes to US Steel’s manufacturing processes.
Under the deal, Nippon Steel will gain access to US Steel’s robust market, which has been strengthened by tariffs imposed under President Donald Trump and former President Joe Biden. In exchange, US Steel will receive top-notch technology from Nippon Steel, making it a world-leading steelmaker.
The combined company will become the fourth-largest steelmaker in the world, with operations in both Japan and the US. US Steel shareholders approved the deal over a year ago, but it was put on hold due to national security concerns. The companies have kept the full terms of the deal confidential, including the national security agreement struck with Trump’s administration.
The United Steelworkers union had opposed the deal, citing concerns about job losses and national security risks. However, the “golden share” provision is seen as a way to mitigate these concerns and ensure that US Steel remains competitive in the domestic market.
Source: https://abcnews.go.com/Business/wireStory/nippon-steel-finalizes-15b-takeover-us-steel-after-122970867