The announcement was made via a joint press release issued by Nippon Steel and its subsidiary, Nippon Steel North America Inc.
Trump concluded that the proposed acquisition would “sufficiently mitigate potential risks to U.S. national security,” provided the conditions set forth in the relevant executive order are met. This decision follows Trump’s visit to US Steel’s facility in Irvin, Pennsylvania, on May 30, 2025.
National Security Agreement and “Golden Share” Clause
The Trump administration’s approval is based on the National Security Agreement (NSA) signed between the parties and the U.S. government. As part of the agreement, Nippon Steel committed to investing a total of $11 billion in U.S. steel production by 2028 and building a new $3 billion facility that will create over 100,000 jobs.
The agreement also includes a “golden share” clause, granting the U.S. government veto power over certain strategic decisions related to steel production. The deal successfully passed the U.S. Department of Justice’s review process.
Major Step in Investment, Production, and Employment
With the acquisition of US Steel, Nippon Steel aims to support its global growth strategy by participating in American infrastructure projects, despite the 50% import tariffs imposed by the U.S. government on steel from rival countries. The strategy is expected to expand Nippon Steel’s global footprint while allowing US Steel to undergo significant restructuring through new investments.
Had the acquisition failed, Nippon Steel would have been required to pay a $565 million termination fee, as outlined in the contract. However, with all regulatory approvals now in place, that risk has been eliminated.
Pittsburgh Headquarters Maintained, U.S. Representation Secured
The Trump administration also secured several commitments from Nippon Steel, including keeping US Steel’s headquarters in Pittsburgh, ensuring American representation on the board of directors, and subjecting certain key executive appointments to U.S. government approval.
The Japanese government expressed support for the agreement, stating that the merger would “enhance the innovation potential of the U.S. and Japanese steel industries and strengthen the strategic partnership between the two nations.”
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