On June 14, US President Donald Trump formally approved Nippon Steel’s $14.9 billion acquisition of US Steel through an executive order posted on the White House website. The green light comes after an 18-month process marked by union resistance and dual national security reviews. The transaction may proceed contingent on the companies upholding a national security agreement signed with the US Treasury and other relevant CFIUS agencies.

Under the agreement, Nippon Steel will invest approximately $11 billion by 2028 in domestic operations and commit to provisions tied to trade, management, and production. The deal includes a so-called “golden share” for the US government, potentially granting veto power over strategic decisions. Details of this mechanism have yet to be disclosed.

The acquisition boosts Nippon Steel’s annual production capacity from 63 million to 86 million tons and secures its position in the growing US market, especially in high-quality steel segments. However, investors remain cautious about financial implications, including up to $6.9 billion in capital funding. Meanwhile, Nippon is also pursuing a ¥870 billion ($6.05 billion) investment in low-emissions electric arc furnaces at its domestic facilities, partially supported by Japanese government funding. Shareholders are still weighing the long-term benefits of the acquisition.