In a surprising turn of events, President Donald Trump has conditionally approved Nippon Steel’s acquisition of U.S. Steel, overturning a previous block by former President Joe Biden’s administration. The decision paves the way for significant Japanese investment in the American steel industry.
The joint announcement made on Friday revealed that Trump’s executive order allows the deal to proceed under certain conditions aimed at safeguarding national security. While the detailed terms of the agreement were not disclosed, the companies stated that Nippon Steel will invest approximately $11 billion in the United States by 2028. Additionally, the U.S. government will hold a “golden share,” granting it veto power over key corporate decisions to protect national interests.
Earlier this year, after the Biden administration rejected the merger, Nippon Steel and U.S. Steel filed a lawsuit to overturn the decision and reopen regulatory review. Trump’s approval represents a reversal of his earlier stance during his presidential campaign, where he opposed the acquisition. However, upon taking office, he expressed optimism about reaching a beneficial arrangement.
On May 23, President Trump indicated his support for the partnership, highlighting the potential benefits for the U.S. economy and the steel industry. “This collaboration will strengthen our steel sector and create jobs,” he stated.
The conditional approval marks a significant development in the global steel industry, signaling enhanced cooperation between Japan and the United States. The substantial investment by Nippon Steel is expected to boost American steel production and foster economic growth.
