Nippon Steel Corporation of Japan has officially completed its acquisition of US Steel Corporation for a staggering US$ 15 billion. This move solidifies their position as a world-leading steelmaker, boasting top-notch technologies and manufacturing capabilities.
The agreement was reached after Nippon Steel agreed to give the US government a “golden share”, granting them veto-like power over strategic decisions. This unique arrangement does not entitle the US government to any dividend payments and does not require any financial investments from Washington.
Under this historic partnership, US Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania. The deal aims to protect and create over 100,000 jobs by injecting massive investments into US steelmaking operations across US Steel’s footprint.
The combined Nippon Steel Group will operate from both Tokyo and Pittsburgh, with an annual crude steel production capacity of approximately 86 million tons. This aligns with Nippon Steel’s global strategic goal of reaching 100 million tons.
Nippon Steel plans to invest around US$ 11 billion in US Steel by 2028, including a greenfield project scheduled for completion after 2028. To safeguard US national security interests, US Steel will continue to be managed from its existing Pittsburgh headquarters, with a majority of the board of directors and key management personnel being US citizens.
Eiji Hashimoto, Nippon Steel’s Representative Director, Chairman, and CEO, expressed his delight at the partnership, crediting President Trump for his visionary decision. He highlighted the commitment to solidifying Nippon Steel’s position as the world’s leading steelmaker through investments, technology transfer, and collaboration with US Steel.
US Steel’s CEO, Dave Burritt, echoed the sentiment, calling it a momentous day for the American steel industry. He praised President Trump’s leadership for securing a favorable deal that ensures US Steel’s presence in the US, with Pittsburgh remaining its home base. The partnership with Nippon Steel is expected to drive growth, innovation, and job creation across the country.
As the two companies embark on this new chapter, the industry eagerly anticipates the transformative impact of this merger on the global steel market. With a shared vision for excellence and growth, Nippon Steel and US Steel are poised to lead the way in the steelmaking sector.
