On Friday evening, Trump signed an executive order approving the partnership, bringing an end to the long-running saga over foreign ownership of a key national asset which began in December 2023, when US Steel and Nippon Steel announced plans for a US$14.9 billion merger.
Nippon’s acquisition of US Steel was held up by former president Joe Biden, who blocked it in his last weeks in the White House on national security grounds.
Trump initially opposed Nippon Steel’s takeover plan, calling for US Steel to remain domestically owned, but he threw his support behind a “partnership” in May.
“US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president said in a Truth Social post.
In a joint statement, US Steel and Nippon Steel said Trump “has approved the companies’ historic partnership that will unleash unprecedented investments in steelmaking in the US, protecting and creating more than 100,000 jobs”.
“In addition to president Trump’s executive order approving the partnership, the companies have entered into a national security agreement (NSA) with the US government,” they said, which calls for approximately US$11 billion in new investments to be made by 2028.
Trump’s executive order did not provide details about the NSA, but he reserved the authority to issue further orders “as shall in my judgment be necessary to protect the national security of the US”.
Friday’s announcement follows a review of the deal by the government’s committee on foreign investment in the US (CFIUS), which is tasked with analysing the national security implications of foreign takeovers of US companies.
Yesterday, commerce secretary Howard Lutnick insisted on the need for the “perpetual golden share”, which gives the US government the right to block any action it so chooses.
Lutnick did not elaborate on the precise value of the share, saying only that it had “powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of US Steel, and US manufacturers”.
He gave a list of examples of actions that the US government would have to approve, including any relocation of US Steel headquarters, moving the company outside the US, changing its name or moving jobs outside the country.