Nippon Steel Expected to Acquire U.S. Steel with U.S. Board Control

Japan's Nippon Steel is set to acquire U.S. Steel for $55 per share in a deal described as a 'partnership' by President Donald Trump, who cleared the transaction despite earlier opposition. The arrangement includes provisions to ensure U.S. control, with an American CEO, a majority of U.S.-based board members, and U.S. government approval over certain corporate functions, including granting the government a 'golden share.' Nippon Steel has pledged to keep U.S. Steel's headquarters in Pittsburgh, avoid layoffs or plant closures, and invest $14 billion over 14 months, including upgrading blast furnaces and limiting competing steel slab imports. The merger would create the world's third-largest steel producer by volume, following China's Baowu Steel Group and Luxembourg's ArcelorMittal. While President Joe Biden had previously blocked the deal on national security grounds, Trump ordered a review that ultimately allowed the acquisition to proceed under these new terms. Nippon Steel has acknowledged the partnership as a 'game changer,' though it has not publicly confirmed all final deal terms.