Trump officially approves the $14.9 billion acquisition of United States Steel Corporation by Nippon Steel.

President Trump formally approved the acquisition of United States Steel Corporation (X.US) by Nippon Steel on Friday. Trump signed an executive order stating that if the two companies sign an agreement with the Treasury Department to address the national security concerns raised by the transaction, then the acquisition can proceed. Subsequently, the two companies announced that they had signed the agreement, meeting the conditions of Trump's executive order, effectively obtaining approval for the merger. Boosted by this news, United States Steel Corporation's stock rose over 5% in after-hours trading on Friday. In their statement, the two companies thanked Trump and stated, "We look forward to fulfilling our commitments to make America's steel manufacturing and overall manufacturing industry great again." The statement also mentioned that the agreement includes $11 billion in new investments by 2028, as well as commitments in corporate governance, production, and trade. The companies also revealed that they will issue golden shares to the U.S. government, but did not provide more details. Previous reports had suggested that Nippon Steel would invest an additional $3 billion in new factories after 2028. This acquisition will inject crucial investments into the struggling United States Steel Corporation, a flagship company of the industry, and give Nippon Steel the opportunity to participate in numerous American infrastructure projects while its foreign competitors still face a 50% steel tariff. Additionally, the approval means that Nippon Steel does not need to pay a $565 million "breakup fee" which would have been required if the transaction was not approved. The acquisition of United States Steel Corporation by Nippon Steel has been full of twists and turns. Nippon Steel proposed at the end of 2023 to acquire all outstanding shares of United States Steel Corporation for $55 per share. However, the Biden administration at the time blocked the transaction citing "national security" concerns, arguing that handing over critical domestic industries to foreign investors posed risks. Trump, both before and after taking office as U.S. President, had also expressed opposition to the deal. However, things took a turn at the end of May. On May 23, Trump announced that United States Steel Corporation would establish a "planned partnership" with Nippon Steel. Trump stated on social media that the headquarters of United States Steel Corporation would remain in Pittsburgh, and the partnership would bring about $14 billion in growth to the U.S. economy over the next 14 months, creating approximately 70,000 new jobs. Trump said, "This will be a planned partnership for United States Steel Corporation, and it is the largest investment in the history of Pennsylvania." "My tariff policy will ensure that the U.S. steel industry will always be produced on U.S. soil." Trump's remarks indicated his support for the acquisition of United States Steel Corporation by Nippon Steel. United States Steel Corporation's stock price surged over 21% on May 23 on the back of this positive news. On June 13, Trump stated that after Nippon Steel's acquisition of United States Steel Corporation, the U.S. government would retain "golden shares" rights. Trump claimed, "We have golden shares, a special right controlled by myself or the president, which will ensure absolute control." Trump asserted that this right equated to "Americans holding a 51% ownership," but the specific implications are not yet clear. This is the first time the U.S. government has publicly confirmed seeking a "golden shares" arrangement, although the White House has not specified the terms including whether it includes typical equity elements such as voting rights. It is worth noting that earlier on Friday, a senior executive at Nippon Steel stated in an interview that the acquisition of United States Steel Corporation would require "some degree of management freedom" to move forward. This statement indicates that final discussions on the transaction structure are still ongoing and led to United States Steel Corporation's stock falling nearly 3% on Friday.