Nippon Steel Completes Global Expansion Following Full Acquisition of U.S. Steel

On June 18 (Eastern Time), Nippon Steel Corporation officially announced the completion of its acquisition of United States Steel Corporation, as reported by CCTV News. Under the agreement, Nippon Steel acquired all outstanding shares of U.S. Steel at a price of USD 55 per share. The company noted that the deal is expected to safeguard and create over 100,000 jobs. With this move, U.S. Steel’s facilities across Pennsylvania, Indiana, Arkansas, Minnesota, and Alabama will undergo extensive investment and expansion.

Nippon Steel disclosed plans to invest around USD 11 billion into U.S. Steel by 2028, during President Trump’s term. U.S. Steel will remain incorporated in the United States, headquartered in Pittsburgh, Pennsylvania, and continue operating its domestic production lines. The board of directors will be composed mostly of U.S. citizens, including the CEO and senior leadership team. Additionally, President Trump retains the authority to appoint one board member and holds a “golden share,” granting the U.S. government veto rights over decisions concerning production halts, capacity reductions, or overseas job relocations.

According to figures from the World Steel Association, Nippon Steel ranked fourth globally in 2024 with crude steel output of 43.64 million tons. U.S. Steel placed twenty-ninth with 14.18 million tons. Industry analysts highlighted that this acquisition allows Nippon Steel to deepen its global footprint by establishing a strategic presence in Japan, India, and the United States. The U.S. market, viewed as the largest globally for high-grade steel, offers strong demand for advanced automotive and industrial products as well as attractive profit margins.

The transaction also provides Nippon Steel with a path to circumvent the 50% tariff imposed on steel imports. Earlier in the month, the Trump administration raised the tariff from 25% to 50%, citing inadequate support for domestic steel capacity and aiming to reduce national security risks associated with foreign steel and aluminum products.

Initially announced in December 2023, the merger encountered political headwinds. On January 3, former President Biden issued an executive order blocking the acquisition over national security concerns. The United Steelworkers union also voiced opposition, asserting that the deal endangered U.S. workers, domestic manufacturing, and national interests.

Subsequently, both Nippon Steel and U.S. Steel filed lawsuits challenging the executive order and sought a renewed review from the Committee on Foreign Investment in the United States (CFIUS).
The acquisition regained momentum following President Trump’s return to office. In April, a 45-day national security review of the deal was initiated by his administration.

One month ago, Nippon Steel outlined a total investment plan of USD 14 billion contingent upon U.S. approval, including USD 4 billion allocated for the construction of a new steel facility. U.S. Steel reaffirmed its American identity and indicated that the strategic partnership would bring significant capital, innovation, and job creation within a four-year horizon.

On May 23, President Trump publicly stated that U.S. Steel would retain its headquarters in Pittsburgh, generate 70,000 jobs, and deliver USD 14 billion in economic value—a remark widely interpreted by investors as a signal of support.

The Japanese government views the acquisition as an opportunity to bolster economic security cooperation with the United States. Nonetheless, ongoing tariff negotiations between Japan and the U.S.—which have included six ministerial-level meetings since April—have yet to yield tangible progress. Japanese Prime Minister Shigeru Ishiba is expected to revisit the tariff issue at the upcoming NATO summit in the Netherlands. President Trump has previously granted a 90-day suspension on certain reciprocal tariffs for selected countries, a measure scheduled to expire on July 9.