Nippon Steel acquires US Steel for $14.9bn with ‘golden share’ for Trump | US news
Nippon Steel’s US Steel’s purchase of $ 14.9 billion closed on Wednesday, and companies confirmed an unusual power for the Trump administration after the Japanese company’s struggle to close the purchasing process.
For the agreement, Nippon acquired 100% of the US Steel shares for $ 55 and first appeared in December 2023 for the proposal for a steel manufacturer.
A press release on the filing explains the details of a national security agreement on the Trump administration, which gives Donald Trump a member of the board of directors as well as a member of the Trump administration.
Nippon Steel’s president and CEO Eiji Hashimoto thanked Trump for his role and added that “Nippon Steel was excited to open a new part of the US Steel’s storey history”.
Measures agreed to represent an unusual control level that was adopted to the government to save the agreement by companies after a rocky approval way encouraged by high -level political opposition.
The gold share makes a series of institutional decisions, as the US government is prevented by the US government’s veto authority, idling plants to cut off production capacity and to move abroad by the trade secretary, Howard Lutnick, in a weekend social media post.
The share shows the government that the USA’s center of Steel has a potential displacement from Pittsburgh, Pennsylvania, the transfer of jobs abroad, a name change, and a rival work potentially.
National Security Lawyers said on Monday, the United States, which examines foreign investment for national security risks, said that the inclusion of gold shares to gain approval from the Committee of Foreign Investments may be away from US companies.
The purchase will invest in an investment of $ 11 billion for an investment by 2028, including 1 billion dollars for a US mill for a new US mill, as first reported by Reuters.
In addition, the world’s fourth largest steel company Nippon Steel’s American infrastructure projects, while foreign competitors will face 50%steel tariffs. The Japanese company also avoids separation fees of $ 565 million, which will have to pay if companies do not secure their approval.
Nippon Steel said on Wednesday that annual raw steel production capacity is expected to reach 86m tons and Nippon Steel’s 100m tons of global raw steel production capacity approached its global strategic target.
The closure of the agreement was almost guaranteed, but many investors received approval after Nippon Steel, whom Trump started a rally on May 30th, as a “great partner ,, gave an uncertain blessing of Nippon Steel’s“ investment ..
After opposing the agreement last year, President Joe Biden and Republican Trump, who were both democratic, expressed their opposition when they tried to make woo voters in Pennsylvania, an important swing state in the presidential election campaign.
Shortly before leaving the post in January, Biden prevented the agreement for national security reasons and filed a lawsuit by companies that argued that the national security investigation they received was prejudiced. Biden appeal to the White House.
Steel companies saw a new opportunity to open a 45 -day national security review for the proposed merger under the direction of Trump in April.
However, Trump’s public has created a confusion from a simple “investment ın by the Japanese company to swim from a simple“ investment ”in the US steel to Nippon Steel.
Trump’s May 30 rally approved hopes, and the signing over finally came with a manager order that gave permission to merger if they signed a NSA to the US government on Friday.
