Nippon Steel acquires US Steel for $14.9bn after months of struggle | International Trade

The acquisition of 14.9 billion dollars in Japanese Steel Us Steel gave an unusual diploma Power for US President Donald Trump after the Japanese company’s 18 -month struggle to close the purchase.

The agreement concluded on Wednesday, the companies said.

Depending on the conditions of the agreement, Nippon bought 100% of US Steel shares at $ 55 per share, which was used for the first time in December 2023. A press release on the file also reveals the details of a national security agreement signed with the Trump administration, which gives Trump the power to appoint a member of the board of directors, as well as a non -economic gold share.

Eiji Hashimoto, Chairman and Chief Executive Officer of Nippon Steel, thanked the president for his role. He said that Nippon Steel had agreed to represent an unusual level of control conceded by companies in the government to save the agreement, after a difficult path to stimulated approval by high -level political opposition.

The gold share gives the veto of the American government on a multitude of business decisions, factories in slow motion to reducing production capacity and the moving of jobs abroad, as planned in a social media weekend post by the Secretary of Commerce Howard Lutnick.

The share also gives the government a veto on a potential relocation of the registered office of US Steel de Pittsburgh, in Pennsylvania, a transfer of jobs abroad, a change of name and any potential future acquisition of a rival company, the press release said.

The inclusion of the Golden part to win the approval of the Foreign Investment Committee in the United States, which examines foreign investments for national security risks, could move investors abroad on Monday, national security lawyers said.

The acquisition will give us steel of $ 11 billion in investment until 2028, including $ 1 billion for a new US mill which will increase by $ 3 billion over years.

It will also allow Nippon Steel, which is the fourth largest steel company in the world, to capitalize on a multitude of American infrastructure projects while its foreign competitors face 50%steel rates.

The Japanese company also avoids $ 565 million in rupture costs it should have paid if companies had not obtained approvals.

Nippon Steel said on Wednesday that its annual steel crude production capacity is expected to reach 86 million tonnes, which brings it closer to the global strategic target of Nippon Steel of 100 million tonnes of capacity.

The president described Japanese Steel as a “big partner”. After the United Steelworkers Union was against the agreement last year, The two presidents of the time Joe BidenA Democrat, and Trump, a Republican, expressed their opposition when they sought to court the voters in Pennsylvania, a key swing state, in the presidential electoral campaign.

Shortly before leaving his duties in January, Biden blocked the agreement on national security reasons, which prompted the proceedings by the companies, which argued that the national security exam they received was biased. The White House Biden challenged the accusation. The steel companies have seen a new opportunity in the Trump administration, which opened a new 45 -day national security review in the merger offered in April.

But Trump’s public comments, ranging from the reception of a simple “investment” in American steel by the Japanese company to float a minority participation for Nippon Steel, stimulated confusion.

Trump’s May 30 of May 30 stimulated the hopes of approval, and the disconnection finally came on Friday with a decree allowing companies to combine if they sigated an NSA giving the American government a part of gold, which they did.

The markets responded positively to the news. Japanese Steel, who is exchanged under the NPSCY Ticker, is up 2.7% compared to the opening of the market at 11:00 am in New York (3:00 pm GMT).