Nippon Steel Corporation has finalized its US$14.9B acquisition of U.S. Steel, marking a significant development in the global steel industry. The transaction, which includes a US$55 per share cash offer, was concluded after 18 months of negotiations and regulatory reviews.
Under the terms of the agreement, U.S. Steel will retain its name and headquarters in Pittsburgh, Pennsylvania, and maintain a US domiciled board and management team.
A notable aspect of the deal is the inclusion of a “golden share” provision, granting the US government veto power over certain strategic decisions, such as plant closures, relocations, and changes to the company’s name or headquarters. This arrangement aims to address national security concerns and ensure that critical steel production capabilities remain under US oversight.
In addition to the acquisition, Nippon Steel has committed to investing US$11B in U.S. Steel’s operations by 2028, with plans for a new steel mill to be constructed after 2028. These investments are expected to support over 100,000 jobs across several states, including Pennsylvania, Indiana, and Alabama.
The completion of this acquisition positions the combined entity as a leading player in the global steel market, with an annual production capacity of 86Mt. The strategic partnership is anticipated to enhance competitiveness and innovation within the industry, particularly in the US market.
