Trump secures golden share as Nippon Steel completes US Steel takeover

Japanese steel giant Nippon Steel has finalized its $14.9 billion acquisition of U.S. Steel (NYSE: X), ending an 18-month political and regulatory battle.

The deal is a win for President Donald Trump’s administration, which negotiated a “golden share” giving the US government sweeping veto rights.

Nippon Steel’s $55-a-share acquisition creates the world’s second-largest steelmaker.

The deal, which faced opposition from US labor unions and political leaders including Joe Biden, was revived under Trump, who oversaw a new national security review.

That review resulted in the creation of a golden share, allowing the US government to block key decisions such as plant closures, production cuts, or job relocations. The arrangement was first revealed in a weekend social media post by Commerce Secretary Howard Lutnick. 

US Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania.

A majority of the members of US Steel’s board of directors will be US citizens and key management personnel, including its CEO, will also be US citizens.

Nippon Steel’s chairman, Eiji Hashimoto, credited Trump for helping bring the deal to completion and said the merger marks a new era for the historic American steelmaker.

Nippon Steel will make approximately $11 billion in new investments in US Steel by
2028, which includes an initial investment in a greenfield project that will be completed after 2028.

The acquisition expands Nippon Steel’s crude steel output capacity to 86 million tonnes annually, nearing its strategic 100 million-ton target.

Timeline

First proposed in December 2023, the deal was derailed when the Biden administration blocked it on national security grounds.

Legal action followed, but under the Trump administration, a new 45-day review was initiated by the Committee on Foreign Investment in the US. Nippon also hired former US Secretary of State Mike Pompeo and engaged labor leaders to help steer the deal to completion amid strong political headwinds.

The resulting agreement included unprecedented terms: a US-appointed board member, capital spending guarantees, and citizenship rules for executives.

While the golden share was key to regulatory approval, it raises concerns about future foreign interest in strategic US assets.