Nippon Steel and U.S. Steel finalize deal
U.S. Steel and Nippon Steel announced Wednesday, June 18, that they have finalized their partnership, as the deal aims to create more than 100,000 jobs through investments by Nippon in steel-making efforts within the United States.
The partnership ensures the U.S. Steel will retain is name and headquarters in Pittsburgh and will continue to mine, melt and make steel right here in the United States.
According to the agreement, Nippon Steel has agreed to make about $11 billion in new investments in U.S. Steel by 2028, which includes an initial investment in a greenfield project that will be completed after 2028.
“This is a momentous day for our country, our communities, and the American steel industry,” U.S. Steel CEO Dave Burritt said. “Thanks to President (Donald) 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.”
A deal between Nippon and U.S. Steel was first proposed in late 2023, and the deal was rejected by then President Joe Biden at the time, citing national security threats as the reasoning.
Trump recently ordered a new review of the deal and suggested Nippon could agree to "invest heavily" in U.S. Steel's facilities rather than fully acquiring the company.
The companies have also entered into a National Security Agreement with the U.S. government.
The agreement also states a majority of U.S. Steel’s board of directors will be mostly comprised of United States citizens, along with management personnel, such as its CEO.
In addition, Nippon Steel will not prevent or interfere with U.S. Steel’s ability to pursue trade action under U.S. law, according to the agreement.
It also states Takashi Mori, Nippon Steel's representative director and vice chairman, will serve as chairman of the board of U.S. Steel.
The agreement also includes a “golden share” to the U.S. government, which will give the president the power to approve or veto a number of major corporate decisions, such as giving the U.S. government the right to appoint one independent director.
Nippon Steel has manufacturing operations in more than a dozen countries, including Japan, India and Mexico.
U.S. Steel has been headquartered in Pittsburgh since 1901, and has operations elsewhere in the U.S. and in Central Europe.
