Trump green lights US Steel deal

President Donald Trump issued an executive order Friday approving US Steel’s merger with Japan’s Nippon Steel through a National Security Agreement. The NSA includes a commitment to more than $11 billion in new steelmaking investments in the United States by 2028, and the creation of more than 100,000 jobs.

The deal also gives the US government a “golden share” of the merger, which includes commitments to governance, domestic production and trade. “This partnership will bring a massive investment that will support our communities and families for generations to come,” US Steel and Nippon Steel companies said in a joint statement.

The companies said that they have completed the US Department of Justice’s review process. As the partnership is readying for its final approval the Committee on Foreign Investment in the United States (CFIUS) is authorized to implement and enforce measures to protect US national security until the partnership is finalized.

Nippon Steel initially proposed buying US Steel in 2023 for $14.9 billion, but then President Biden blocked the deal on national security grounds in January before leaving office.

The Trump administration launched a fresh review of the deal in April, and the President recently signaled support that the partnership will allow Nippon Steel to without taking full ownership of US Steel.

It looks like the deal between US and Nippon Steel is on course to be finalized, but as we have seen during the Trump administration, nothing is certain.