Nippon Steel Completes Acquisition of U.S. Steel, Advancing Global Expansion Strategy

According to CCTV News, on June 18 Eastern Time, Nippon Steel Corporation (hereinafter “Nippon Steel”) announced that it had completed the acquisition of United States Steel Corporation (hereinafter “U.S. Steel”).

Under the agreement, Nippon Steel acquired 100% of U.S. Steel shares at a price of USD 55 per share. Nippon Steel stated that the collaboration will protect and create over 100,000 jobs. Through large-scale investment, U.S. Steel's operations in Pennsylvania, Indiana, Arkansas, Minnesota, and Alabama will be fully developed.

According to the announcement, Nippon Steel plans to invest approximately USD 11 billion in U.S. Steel before 2028 (during the Trump administration). U.S. Steel will remain an entity registered in the United States, with its headquarters in Pittsburgh, Pennsylvania, maintaining its production and supply capacity within the country. A majority of U.S. Steel’s board members will be U.S. citizens, and its key executives, including the CEO, will also be American citizens.

Additionally, former U.S. President Trump holds the authority to appoint one board member and retains one “golden share,” which grants the U.S. government veto power over key corporate decisions such as production suspension, capacity reductions, and job relocations overseas.

According to the World Steel Association, in 2024, Nippon Steel ranked fourth globally in crude steel production with 43.64 million tons, while U.S. Steel ranked 29th with 14.18 million tons.
Analysts noted that this acquisition completes Nippon Steel’s new global expansion strategy, forming a strategic “iron triangle” centered on Japan, India, and the United States. Nippon Steel considers the U.S. to be “the world's largest high-end steel market,” with strong demand for high-performance automobiles and other end products, offering substantial profit potential.

The acquisition also enables Nippon Steel to bypass the 50% steel tariff. Earlier this month, the Trump administration raised the import steel tariff from 25% to 50%, stating that the previous rate did not enable domestic industries to reach and maintain necessary production capacity. The increased tariff aims to provide greater support and reduce or eliminate threats to national security posed by imported steel, aluminum, and related products.

The two companies first announced the merger in December 2023, but faced prolonged political opposition. On January 3 this year, then-President Biden signed an executive order blocking the acquisition on national security grounds. The United Steelworkers (USW) also opposed the deal, arguing that the acquisition would be disastrous for American steelworkers, national security, and the future of U.S. manufacturing.

In response, Nippon Steel and U.S. Steel filed a lawsuit against President Biden and the Committee on Foreign Investment in the United States (CFIUS), requesting the court to overturn the executive order and reexamine the transaction.

The change in administration brought a shift in the situation. In April this year, the Trump administration launched a new 45-day national security review of the merger. One month ago, Nippon Steel announced plans to invest a total of USD 14 billion in U.S. Steel if the Trump administration approved the deal, including USD 4 billion to build a new steel plant. U.S. Steel stated that it would “retain its American identity” and pursue growth through cooperation with Nippon Steel, expecting large-scale investment, new technologies, and thousands of new jobs over the next four years.
On May 23, Trump revealed in advance that U.S. Steel would remain in the U.S. with headquarters in Pittsburgh. The cooperation is projected to create 70,000 jobs and generate USD 14 billion in economic value. Investors interpreted this as a signal of Trump’s approval.

From Japan’s perspective, the acquisition is expected to strengthen the Japan-U.S. economic security partnership. Despite this, since April, Japan and the U.S. have conducted six rounds of ministerial-level tariff negotiations without breakthrough. Japanese Prime Minister Shigeru Ishiba plans to discuss tariff issues again with Trump during the upcoming NATO summit in the Netherlands next week. Previously, Trump had announced a 90-day suspension of the so-called “reciprocal tariffs” on certain countries, set to expire on July 9.