Mirror Review
June 6th, 2025
Summary:
- Japan’s Nippon Steel’s acquisition of U.S. Steel, often referred to as the US Nippon Steel Deal, gains renewed momentum.
- Recently, President Donald Trump changed his mind and now supports the deal, calling it a “planned partnership”.
- This new support has brought more hope for the $14.1 billion buyout proposal (approximately $14.9 billion including debt) at $55 per share, with huge commitments to secure American jobs and boost domestic production.
What are the Latest Updates on the US Steel-Nippon Deal?
The journey of the US Steel-Nippon deal has been complex, marked by initial concerns and regulatory scrutiny. Here’s what’s new:
- Trump’s Endorsement
Around late May 2025, Donald Trump did a big turnaround and said he now supports the buyout. He’s calling it a “planned partnership”. He pointed out some good things that could come from it, like creating 70,000 jobs and bringing $14 billion into the U.S. economy. He also mentioned that big investments in the company are expected in the next 14 months.
- Regulatory Re-evaluation
Because Trump now supports the deal, the Committee on Foreign Investment in the United States (CFIUS) has been directed to re-evaluate the deal. This happened after the Biden administration had blocked the deal in January 2025 due to concerns about national security. A decision from this new review is expected soon.
- Commitments by Nippon Steel
To address concerns, Japan’s Nippon Steel has made several important commitments. These include:
- Investing $14 billion in U.S. Steel’s operations. A significant amount of funds will be allocated to upgrading facilities like Mon Valley Works and Gary Works, and potentially building a new mill.
- Honoring all existing union contracts with US Steel workers and guaranteeing no layoffs or plant closures as a direct result of the acquisition.
- Keeping U.S. Steel’s headquarters in Pittsburgh, Pennsylvania.
- Ensuring a U.S. CEO and a US-majority board for North American operations.
- A “Golden Share” for the Government?
Discussions reportedly include the U.S. government potentially receiving a “golden share,” which would grant it veto power over certain company decisions, ensuring national interests are protected.
- How the Market Reacted
U.S. Steel’s stock saw a significant rise following Trump’s endorsement, trading close to Nippon Steel’s offer price of $55 per share.
What Impact Will the Nippon Acquisition Of US Steel Have?
The US Nippon Steel Deal is poised to have a multi-faceted impact on the American steel industry and broader economy:
- Modernization and Technological Advancement:
U.S. Steel facilities are set to receive a huge capital infusion. This will not only upgrade aging infrastructure but also potentially integrate Nippon Steel’s advanced steelmaking technologies. These include producing high-grade steel for electric vehicles and greener steel production methods.
- Job Security and Economic Boost:
Nippon Steel has committed to protecting jobs and honoring labor agreements. President Donald Trump has projected that the deal could add $14 billion to the U.S. economy and create a significant number of jobs (exact figures are part of ongoing discussions).
- Global Competitiveness:
The merger aims to create a stronger, more competitive global steel entity (potentially the world’s third-largest). This would better position the American steel industry against international competitors, particularly from China.
- Strong Domestic Supply Chain:
By investing in and modernizing U.S. facilities, the deal aims to enhance domestic steel production capacity, contributing to a more resilient American supply chain for this critical material.
- Future for U.S. Steel:
Many experts see this buyout as an important chance for U.S. Steel to refresh its operations, helping it stay strong and continue to be a key part of American manufacturing for years to come.
What Key Figures had to say regarding the US Nippon Steel Deal?
The deal has gotten different reactions. Trump is now a strong supporter, saying, “This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add US$14 billion to the U.S. Economy”.
However, the United Steelworkers (USW) union has been more careful.
USW International President David McCall had said earlier that the union wasn’t part of the early talks and had concerns.
Some US Steel workers in the Pittsburgh area are hopeful but cautious, wishing for “new blood” and better technology for their mills.
Richard Tikey, who is a vice president for USW Local 1557, mentioned, “There’s a lot of questions because we don’t have the details”.
But Nippon Steel and U.S. Steel have always said the partnership will be beneficial.
Even when the Biden administration first blocked the deal, they put out a statement together saying they “will never give up” on it.
They stressed it would “revitalize communities that rely on American steel… provide job security for American steelworkers, [and] enhance the American steel supply chain”.
What’s Next for the US Steel and Nippon Steel Deal?
While the renewed support and reframing of the US Nippon Steel Deal are significant, the transaction still requires final regulatory approvals, including a favorable outcome from the ongoing CFIUS review.
The coming weeks are expected to bring more clarity on the final structure and conditions of this landmark steel industry partnership.
The promises about keeping jobs, investing in American plants, and having U.S. leadership in North America will be very important for the final agreement and how everyone, especially the US Steel workers, feels about it.
