Nippon Steel’s $14.9 billion offer for US Steel was authorised by US President Donald Trump, ending a turbulent 18-month process for the firms that withstood two national security evaluations and union resistance.
Trump issued an executive order stating that the partnership may proceed if the businesses and the Treasury Department reach a consensus to address the deal’s national security issues. Following their announcement that they had inked the deal, the firms successfully obtained clearance for the merger by meeting the requirements of Trump’s instruction.
In the statement, the businesses thanked Trump and stated, “We look forward to putting our promises into action to make American steelmaking and industry great again.
They noted that the deal contains obligations to governance, production, and commerce, as well as $11 billion in additional investments to be made by 2028. A Tokyo-based representative for US Steel said on Saturday that Nippon Steel will purchase a 100% share in the Japanese corporation.
The scope of US authority was questioned since the steelmakers did not specify the “golden share” they promised to provide to the US government.
Last month, US Senator David McCormick of Pennsylvania, the home state of US Steel, stated that the golden share would allow the government to reject essential decisions regarding the iconic American steel company. According to Reuters, Nippon Steel plans to spend an extra $3 billion on a new plant after 2028.
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