Nippon Steel’s purchase of US Steel is closed, with a big role for Trump

Written by Alexandra Alber

The companies (Reuters)-Nippon Steel’s acquisition of $ 14.9 billion in the United States closed on Wednesday, confirming an extraordinary degree of power to President Donald Trump after the Japanese company’s struggle for 18 months to close the purchase.

Under the terms of the deal, Nippon bought 100 % of the US hard shares at $ 55 per share, as it was first placed in its offer in December 2023 for the well -known steel maker but struggling.

Companies also revealed the details of the National Security Convention confused with the administration, which gives Trump the authority to nominate a member of the Board of Directors in addition to an invisible golden share.

White House spokesman Kush Disi described the “historical deal” and said that the golden share “will protect national and economic security in America.”

Eiji Hashimoto, Chairman and CEO of Nippon Steel, thanked Trump for his role, adding that “Nippon Steel is excited to open a new chapter of the history of the United States Steel Storied.”

The agreement contains an unusual level of control that the government has approved to save the deal, after a rocky path of the approval stimulated by the high -level political opposition.

The national security lawyers said that the inclusion of the golden share in particular to win the approval of the Foreign Investment Committee in the United States, which examines foreign investment of national security risks, can push investors abroad for American companies.

“Optics of the golden session-they suggest that it is somewhat difficult to divorce the discipline of pure national security from making political decisions,” said Josh Greensbcht, a national security lawyer at Wilson Sonsini.

The press statement, which announces the deal, notes that the golden share grants the rights of the US government, including “the right to appoint an independent director; and the approval of the President of the United States, or his designers, regarding specific issues.”

The United States government will obtain the authority to veto the authority of a group of corporate decisions, from lethargy factories, to reduce production capacity and move jobs abroad, as well as inspected in the social media publication on the weekend by the Minister of Commerce Howard Lootnick.

The share also gives the government to veto over a possible transfer of the United States’ steel headquarters from Pittsburgh, transfer jobs abroad, change the name, and any possible future acquisition of a competing company, as the version shows.

“It will continue to watch and carry Nippon for its obligations,” said the United Caliph Union, which strongly opposed the deal, added that the golden share gives Trump “an amazing degree of personal strength on the company.”

86 million tons of productive capabilities

For Nippon Steel, a footholder in the United States is the key to the global growth strategy. The US steel market, including high -quality steel demand, grows nippon steel, amid increasing global trade tensions.

The acquisition will include $ 11 billion in investment in the United States until 2028, including one billion dollars for a new American grinder that will increase by $ 3 billion in subsequent years, according to Reuters for the first time.

It will also allow Nippon Steel, the fourth largest steel company in the world, to benefit from a group of US infrastructure projects while its foreign competitors face a 50 % steel tariff. The Japanese company also avoids $ 565 million in the collapse fees that it had to pay if companies failed to secure approvals.

Nippon Steel said on Wednesday that its annual steel production capacity is expected to reach 86 million tons, which makes it closer to the company’s goal of 100 million tons of global crude steel production capacity.

Kim Ward, a member of the Republican Senate in Pennsylvania, where the headquarters of the United States is located.

Rocky

The closure of the deal was not guaranteed, although many investors saw that approval was probably after Trump occupied a rally on May 30, giving his mysterious blessing to “investment” by Nippon Steel, which he described as a “great partner”.

After the United Nations Union opposed the deal last year, through President Joe Biden, a democratic, and Trump, a Republican, expressed their opposition because they sought to attract voters in Pennsylvania, a major basic country, in the presidential election campaign.

Shortly before his departure in January, Biden prevented the deal on national security, which prompted lawsuits by companies, which argued that the review of the national security they received was biased. The White House dispute Biden on the charge.

Steel companies witnessed a new opportunity in the Trump administration, which opened a new 45 -day national security review in the proposed merger in April.

But Trump’s public comments, starting with the simple “investment” of the United States by the Japanese company to float the minority stake in Nippon Steel, motivated the confusion.

The Trump gathering on May 30 stimulated its hopes of approval, and finally the exit registration came on Friday with an executive order that gives companies permission to collect if they signed the National Security Agency to give the US government a golden share, and they did it.

(Alexandra Alber reports, additional reports by Tiwaryeding by Bed Calvilla, Rod Nickel and Chiso Nymama)

https://media.zenfs.com/en/reuters-finance.com/37f8baeca8d751818bd8d223780383fa

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