Japan’s Nippon Steel has received conditional approval from the United States for its $14.1 billion acquisition of Pennsylvania-based United States Steel. The deal includes a “golden share” for the US government and additional investments totaling $14 billion, securing national and economic interests amid prior political opposition.
Nippon Steel Corporation, one of Japan’s largest steelmakers, has received conditional approval from the United States government for its $14.1 billion acquisition of United States Steel Corporation, a historic steel manufacturing giant based in Pittsburgh, Pennsylvania. This approval marks a pivotal step in forming one of the world’s largest steel conglomerates, with implications for national security, trade relations, and industrial capacity.
In a statement, Nippon Steel confirmed that it had agreed to a national security agreement drafted by the U.S. government. The deal involves a cash offer of $55 per share and includes provisions to protect American economic and strategic interests. The transaction is expected to close by June 18, 2025, according to sources cited by Nikkei.
As part of the agreement, Nippon Steel has pledged to invest an additional $11 billion in the U.S. by 2028, including funds for a greenfield steel plant project. A further $3 billion investment is planned post-2028, potentially bringing the total new investment to $14 billion — separate from the acquisition cost. These commitments are intended to boost domestic manufacturing and preserve U.S. steelmaking capacity.
A notable condition of the deal is the issuance of a “golden share” to the U.S. government. While the share does not include equity rights, it provides veto powers over major operational changes. According to U.S. Commerce Secretary Howard Lutnick, the golden share allows Washington to block any attempt to relocate U.S. Steel’s headquarters from Pittsburgh, change the company’s name, or shut down domestic plants.
Further, the deal includes additional national security measures. These include reserving certain board seats for American appointees, ensuring key leadership roles are filled by U.S. citizens, and commitments to operate existing blast furnaces for at least ten years.
In a statement from the Japanese government, Minister of Economy, Trade and Industry Yoji Muto said, “This investment enhances innovation potential and further solidifies the Japan-U.S. industrial partnership.”
President Donald Trump’s administration facilitated the conditional approval by amending a prior executive order issued by former President Joe Biden, who had earlier blocked the transaction. Trump’s endorsement came with strict terms intended to protect U.S. jobs and manufacturing. “President Trump promised to protect American Steel and American Jobs — and he has delivered,” said White House spokesperson Kush Desai.
The acquisition, once met with bipartisan skepticism during the 2024 U.S. election campaign, now moves forward with enhanced regulatory oversight and industrial policy alignment. Both Nippon Steel Corporation and U.S. Steel have signaled readiness to finalize the deal, subject to full compliance with the agreed terms.
