Japanese company Nippon Steel has finalized its $14.9 billion takeover of U.S. Steel.
The two companies made the announcement Wednesday morning after a negotiation 18-month negotiation centered on a foreign company owning such an all-American brand. In the end, they agreed to a national security agreement with the Trump administration, which gives President Donald Trump the ability to name a board member as well as hold a "non-economic golden share."
Reuters reported the golden share, "gives the U.S. government veto authority over a raft of corporate decisions, from idling plants to cutting production capacity and moving jobs overseas."
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 U. S. Steel’s storied history."
Nippon has committed to invest $11 billion in U.S. Steel facilities by 2028, keep U.S. Steel’s headquarters in Pittsburgh, and has ensured that key management personnel and a majority of U.S. Steel board members are American citizens.
U. S. Steel’s CEO Dave Burritt stated: “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. U. S. Steel will remain rooted in the United States and continue to call Pittsburgh 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 United States.”
The arrangement was reached after months of negotiations with the Trump administration.
Eiji Hashimoto, Nippon Steel’s Representative Director, Chairman and CEO, said, “I am very pleased that the partnership between Nippon Steel and U. S. Steel has been realized thanks to President Trump’s historic and visionary decision. I would like to thank the wide range of stakeholders in the United States and Japan, including U. S. Steel employees, local communities, government officials, elected officials, and business leaders, for their endorsement and support of this partnership. Nippon Steel is excited about opening a new chapter of U. S. 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 U. S. Steel, to solidifying its position as the world’s leading steelmaker.”
You can read more about the deal HERE.
Allegheny County Executive Sara Innamorato released a statement applauding the deal following the news:
“As one of the largest employers in Allegheny County, we welcome the news that Nippon has finalized the deal with US Steel to keep steel jobs here in Western Pennsylvania for decades to come. Keeping local jobs, honoring labor agreements, meeting all regulatory requirements, and becoming a better community partner are all worthwhile outcomes of this deal. I’ve had open lines of communication with Nippon and US Steel since I took office. I look forward to working with them, the unions who represent their workers, and the host communities as a team to both honor the commitments in the agreement and do whatever is necessary to advance the development of a new, modern mill right here in Western Pennsylvania.”