Catenaa, Wednesday, June 18, 2025– Nippon Steel on Wednesday finalized the acquisition of US Steel for nearly $15 billion, after a year and a half from the initial proposal.
The pursuit by Nippon Steel for the Pittsburgh company was buffeted by national security concerns and presidential politics in a premier battleground state, delaying the transaction for more than a year after US Steel shareholders approved it.
It also forced Nippon Steel to expand the deal, including adding a so-called “golden share” provision that gives the federal government a say in some matters.
“Together, Nippon Steel and US Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities,” the companies said.
The combined company will become the world’s fourth-largest steelmaker, and bring Nippon Steel’s top-notch technology to US Steel’s antiquated steelmaking processes.
In exchange, Nippon Steel gets access to a robust US steel market, strengthened in recent years by tariffs under President Donald Trump and former President Joe Biden.
A statement said the federal government will have the right to appoint an independent director and “consent rights” on specific matters. Those include reductions in Nippon Steel’s capital commitments in the national security agreement, closing or idling of US Steel’s existing domestic facilities and changing US Steel’s name and headquarters.
Nippon Steel announced in December 2023 that it planned to buy the steel producer for $14.9 billion in cash and debt, and committed to keeping the US Steel name and Pittsburgh headquarters.
As it sought to win over American officials, Nippon Steel also made a series of bigger capital commitments in US Steel facilities, tallying $11 billion through 2028.
US Steel shares have gained by over 35% since May 18 and are up by over 61% year to date.
