The $14.9 billion acquisition of US Steel by Nippon Steel officially concluded on Wednesday, marking a rare instance of significant government influence in a foreign investment deal in the U.S. after an 18-month battle to finalize the purchase.

Under the terms, Nippon Steel purchased all shares of US Steel at $55 each, following its initial December 2023 bid. The deal includes a national security agreement granting the U.S. government extraordinary control, including the right to appoint a board member and maintain a non-economic “golden share.”

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Nippon Steel’s CEO expressed gratitude to the Trump administration, stating that the deal opens a new chapter for US Steel’s history. The transaction includes an $11 billion investment plan through 2028, with an initial $1 billion allocated for a new U.S. mill and potential additional investments later.

The deal allows Nippon Steel, the world’s fourth-largest steel maker, to benefit from U.S. infrastructure projects, especially as increased tariffs on foreign steel impose a competitive advantage domestically. The acquisition also avoids substantial breakup fees that would be payable if the deal failed to gain approval.

A challenging approval process

Initial opposition from the United Steelworkers union and political figures, including both Democrats and Republicans, delayed approval. Former President Biden blocked the deal on security grounds before leaving office, prompting legal challenges. The Trump administration’s renewed review in April led to the final green light after an executive order granted the government special veto rights.

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