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Japan’s Nippon Steel has closed its nearly $15 billion purchase of American rival US steel, ending more than a year of political contests that threatened to be deprived of the deal on multiple occasions.
US President Donald Trump approved last week’s partnership months after his predecessor, Joe Biden, moved to block the deal. Nippon Steel concluded Trump’s approval after pledging to invest $11 billion in a Pennsylvania-based company by 2028. It also handed the government a golden share of US steel. This allows the White House to reject key companies’ decisions.
“We are extremely pleased that the Japan Steel and US steel partnership has been realized thanks to President Trump’s historic and visionary decision,” Eijihashimoto, chairman and CEO of Nippon Steel, said in a statement.
The US steel base in the Pennsylvania Election Swing state and its historic role in the American industry made the deal a hot topic of debate last year in US presidential elections. Biden, former vice president Kamala Harris and Trump all opposed the deal during the campaign trajectory, fearing it would threaten the work of thousands of unions.
As a result, Nippon Steel launched a grassroots political campaign to bring workers and local elected officials next to them. The effort convinced Trump for overturning his decision, holding a rally last month to celebrate the “smash hit deal” at Pittsburgh headquarters in the US.
Japanese steel manufacturers are committed to maintaining steel headquarters in industrial cities. Nippon Steel also said that the majority of Steel’s board of directors in the US are US citizens, as are top executives like the CEO.
“We share President Trump’s commitment to protecting the US steel industry, American workers and the future of national security in America. We look forward to building a stronger and brighter future for American steel.”
On the last day before the deal had to be contractually closed, Nippon Steel agreed to the US government’s so-called “golden share” and handed the White House veto over key business decisions in an unprecedented move. It does not give the government any economic interest in the group.
As part of its Golden Share, the government will gain final say on many of the future business decisions for US steel, including employment outside the US and closed factories.
