Trump approves Nippon Steel's $14.9 billion acquisition of U.S. Steel

According to the Global Times, citing Reuters, US President Trump officially approved Nippon Steel's acquisition of U.S. Steel for $14.9 billion on June 13.

Trump signed an executive order stating that the acquisition could proceed if the two sides signed an agreement with the U.S. Treasury to resolve national security issues in the transaction. Subsequently, the two companies announced that they had signed relevant agreements, meeting the requirements of the executive order, which means that the transaction has been formally approved.

According to reports, the agreement includes a plan to invest $11 billion by 2028 and covers governance structure, capacity guarantees and trade commitments. Both parties also pointed out that the US government will receive a "golden share", but no further details were disclosed.

The report said that the acquisition will inject key investment into the troubled U.S. Steel Company, while also giving Nippon Steel the opportunity to participate in the construction of many infrastructure projects in the United States. At this time, its foreign competitors are facingsteel tariffs of up to 50%. The approval also saved Nippon Steel from paying a $565 million termination fee for the failure of the transaction.
Earlier, on May 25, local time, US President Trump said that Nippon Steel's acquisition plan for US Steel would be an investment, with Nippon Steel taking partial ownership and US Steel remaining controlled by the United States.

On May 23, local time, US President Trump posted on his social media platform "Real Social" that US Steel would remain in the United States and would be headquartered in Pittsburgh.