Nippon Steel Partners With US Steel After National Security Concerns and Presidential Intervention
Japanese steel giant, Nippon Steel, secures US Steel following prolonged opposition - U.S. Steel's control is seized by Nippon Steel following prolonged opposition
In a turn of events, Nippon Steel, a Japanese steel conglomerate, announced in 2023 plans to join forces with US Steel, rather than fully acquiring the American steel giant for $14.9 billion (around €13 billion). The union was depicted as the best strategy to secure US Steel's continued success.
Initially, the deal faced obstacles. Joe Biden, then US President, opposed the acquisition, fearing that it would jeopardize national security and critical supply chains by giving a significant steel producer to foreign control. His successor, Donald Trump, held the same view when he first came into office.
However, things took a different turn. Following Trump's inauguration, he announced in early February that Nippon Steel would instead invest in US Steel, rather than acquiring it outright. By the end of May, Trump disclosed that a partnership between the two companies was agreed upon.
The partnership worked to allay national security apprehensions and regulatory hurdles. To do so, the deal was modified to include additional federal oversight, including a "golden share" provision that granted the US government some sway over certain matters of the combined entity.
Trump, as US President, ultimately approved this strategic collaboration. On May 30, 2025, he officially endorsed the partnership, heralding extensive investments in American steelmaking and the preservation of over 100,000 jobs. The partnership was intended to modernize US Steel with Nippon Steel's technology, while maintaining American steel industry interests and addressing national security concerns.
In essence, the initial Nippon Steel acquisition proposal underwent a series of changes due to national security reviews and Presidential intervention. The finalized partnership was announced in June 2025, marking a strategic collaboration rather than a full foreign acquisition.
- Nippon Steel
- US Steel
- Steel Conglomerate
- Japan
- USA
- In an adjustment to the initial acquisition proposal, Nippon Steel, a Japanese steel conglomerate, will instead invest in US Steel, addressing the national security concerns and maintaining the American steel industry's interests.
- The partnership between Nippon Steel and US Steel, a strategic collaboration, promises extensive investments in American steelmaking, modernizing US Steel with Nippon Steel's technology, and preserving over 100,000 jobs, as announced by the then US President, Donald Trump.
