US president Donald Trump has approved Japanese steelmaker Nippon Steel's $15bn acquisition of US Steel, reversing his predecessor Joe Biden’s decision to block the deal. The White House announced the move on 13 June, following the signing of a National Security Agreement (NSA) between Nippon Steel, US Steel, and the US government.
Trump stated that the NSA would mitigate national security concerns, which Biden had cited when rejecting the merger in January. Nippon Steel confirmed to Argus that the agreement removes major obstacles to completing the transaction.
Under the NSA terms, Nippon Steel will invest $11bn in US Steel by 2028 and issue a "golden share" to the US government. While such shares typically grant veto power, Nippon Steel emphasized its continued operational freedom over US Steel.
The executive order concludes an 18-month approval process that faced legal challenges and opposition from the United Steelworkers union. Nippon Steel’s CEO Eiji Hashimoto reaffirmed the strategic importance of the acquisition in boosting steel industries in both countries, particularly for sectors like automotive and energy transition. The company aims to expand its global crude steel production to 100mn t/yr by targeting key markets in India, the US, and Southeast Asia.
