President Donald Trump on Friday signed an executive order approving a partnership between US Steel and Nippon Steel, following an agreement reached by the companies on US national security guarantees.
This development concludes the protracted issue concerning foreign ownership of a crucial national asset, which began in December 2023 when US Steel and Nippon Steel initially announced their plans for a $14.9 billion merger.
Nippon’s proposed acquisition of US Steel had been previously stalled by former president Joe Biden, who blocked it during his final weeks in the White House, citing national security concerns.
Initially, Trump had also opposed Nippon Steel’s takeover, advocating for US Steel to remain under domestic ownership. However, in May, he shifted his stance, expressing support for a “partnership.”
“US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president stated in a Truth Social post.
In a joint statement, US Steel and Nippon Steel confirmed that Trump “has approved the Companies’ historic partnership that will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs.”
They further added, “In addition to President Trump’s Executive Order approving the partnership, the Companies have entered into a National Security Agreement (NSA) with the US Government,” which stipulates approximately $11 billion in new investments to be made by 2028.
While Trump’s executive order did not elaborate on the specifics of the NSA, he retained the authority to issue further orders “as shall in my judgment be necessary to protect the national security of the United States.”
Friday’s announcement comes after a review of the deal by the government’s Committee on Foreign Investment in the United States (CFIUS), an entity responsible for analyzing the national security implications of foreign takeovers of US companies.
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