Trump clears Nippon Steel’s $14.9 billion takeover of US Steel after 18-month battle

In a move that rewrites the future of American steelmaking, US President Donald Trump has formally approved Nippon Steel’s $14.9 billion acquisition of US Steel, ending months of political drama, union backlash, and national security reviews.

Trump signed an executive order on Friday, giving the green light to the controversial merger on the condition that both companies sign an agreement with the US Treasury to address national security concerns, as reported by Reuters.

Within hours, Nippon Steel and US Steel confirmed they had signed the agreement, satisfying the final regulatory hurdle.

“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in a joint statement, thanking President Trump, as quoted by Reuters.

$11 billion investment promise and a golden share mystery

As per Reuters, the agreement includes $11 billion in new investments by 2028 into US operations. Nippon Steel is also expected to invest an additional $3 billion in a new mill after 2028, a move designed to strengthen its footprint in American infrastructure.

The merger agreement reportedly outlines commitments on governance, production, and trade, but left investors puzzled by the lack of detail on the promised “golden share”, which would supposedly grant veto power to the US government over major decisions.

As per Reuters, US Senator David McCormick stated last month that the golden share would give Washington direct oversight, particularly critical given US Steel’s deep roots in Pennsylvania, a key swing state.

From Biden’s rejection to Trump’s reversal

The deal’s approval caps a volatile 18-month saga. Nippon Steel first announced the takeover bid in December 2023, but the United Steelworkers union quickly opposed it, warning of job losses and foreign control, as reported by Reuters.

In January 2024, then-President Joe Biden blocked the deal on national security grounds. The companies responded with legal challenges, claiming the review process under Biden was flawed and biased again, as per Reuters.

With Trump returning to the White House in January 2025, the companies gained a new opportunity. In April, his administration launched a 45-day national security review of the merger — as reported by Reuters, which culminated in Friday’s conditional approval.

A global move in a high-stakes steel war

According to Reuters, for Nippon Steel, the world’s fourth-largest steelmaker, gaining access to the US market is critical, particularly as global steel trade tensions escalate.

By acquiring US Steel, the Japanese firm avoids 50 per cent tariffs currently imposed on foreign competitors and positions itself to benefit from America’s expanding infrastructure projects.

The deal also helps Nippon Steel escape $565 million in breakup fees, which it would have owed if the deal failed, as per Reuters.

Welcoming the development, Japan’s Economy, Trade and Industry Minister Yoji Muto issued a statement on Saturday: “The government of Japan welcomes the US government’s decision… this investment will enhance innovation capabilities in the US and Japanese steel industries," as quoted by Reuters.

The timing also aligns with Tokyo’s effort to finalise a US-Japan trade deal ahead of the G7 summit, where Trump is expected to meet Prime Minister Shigeru Ishiba, as per Reuters.

Investors still uneasy

Despite the approval, investor sentiment remains mixed.

According to Reuters, US Steel shares dipped earlier on Friday after a Nippon Steel executive told Nikkei that the takeover would require “a degree of management freedom," a statement seen by many as conflicting with Trump’s previous assertion that the US would maintain control through the golden share.

Trump had earlier referred to Nippon as a “great partner” during a rally on May 30, where he gave vague approval to an “investment," as reported by Reuters.

The Friday order finally clarified that Nippon Steel will acquire a 100 per cent stake in US Steel, as per a spokesperson quoted by Reuters, effectively handing control of a century-old American industrial icon to Japanese ownership.

Steel, politics, and symbolism

For Trump, the approval of this deal is both economic and symbolic. While union disapproval and political risks were apparent, especially in swing states like Pennsylvania, the multi-billion-dollar investment commitment offers political cover. Trump is expected to highlight the merger as evidence of foreign investment flowing into the US under his watch.

For Nippon Steel, the deal represents a bold step in its global strategy, but with long-term financial and political implications.

As the Reuters report suggests, the company may face short-term pressure from investors worried about the scale of its commitments.

Whether the mysterious golden share grants real control to the US or simply satisfies political optics remains an open question.

(With inputs from the agencies)