• Nippon Steel's $14.9 billion acquisition of U.S. Steel is officially closed, marking a major shift in U.S. steel production.
• The deal includes a unique "golden share" allowing the U.S. government to influence corporate decisions.
• CEO Eiji Hashimoto expresses confidence in management autonomy despite the new government oversight.
• The acquisition is expected to generate $11 billion in investments in U.S. Steel by 2028, creating over 100,000 jobs.
• This merger comes amid a protective tariff environment, enhancing the strategic importance of the deal.

Nippon Steel's $14.9 billion acquisition of U.S. Steel has formally closed, confirming a substantial influence for President Donald Trump in corporate governance after an 18-month negotiation period. The deal includes Nippon acquiring all shares of U.S. Steel at $55 per share, which was initially proposed in December 2023, marking a pivotal moment in the U.S. steel industry landscape.

As part of the agreement, a national security pact was established, allowing the U.S. government significant powers, including the authority to appoint a board member and implement a "golden share" structure. This golden share enables governmental vetoes on key corporate decisions, such as changes to production capacity, relocation of facilities, and job transfers, according to Channel News Asia and Reuters.

Despite these controls, CEO Eiji Hashimoto reassured stakeholders that management remains free to execute business strategies effectively. He asserted, "It won't prevent us from doing what we want to do," indicating confidence in the firm's operational independence, as reported by Reuters and Channel News Asia.

In alignment with this deal, Nippon Steel commits to investing around $11 billion into U.S. Steel by 2028. This investment includes developing new facilities, which are expected to create over 100,000 jobs in the United States, reinforcing Nippon's intent to bolster its presence in the U.S. market amid rising domestic demand for high-grade steel, as emphasized by CBS News and BBC.

The political backdrop to this acquisition was complicated, as both Trump and former President Biden previously expressed opposition to foreign ownership of U.S. Steel during their campaigns. However, Trump's administration has now approved the transaction after Nippon Steel made concessions to satisfy national security concerns, showcasing the evolving nature of industrial policy in America, per reports from Al Jazeera and Channel News Asia.

Ultimately, this merger signifies a transformative period for U.S. Steel as it adapts to new market realities, indicating that Nippon Steel is poised to expand in the lucrative U.S. steel sector, especially under protective tariff regimes. Analysts also view the deal as a strategic response to growing equipment capacities and increasing infrastructure projects in the U.S., according to BBC and Reuters.