President Donald Trump signed an executive order Friday approving Nippon Steel’s acquisition of U.S. Steel, with the companies promising $11 billion in new investments by 2028.
The deal includes an initial investment in a new site that would be completed after 2028, according to U.S. Steel’s June 13 press release. The companies have completed the Department of Justice’s review process. With all regulatory approvals finished, they said the deal is “expected to be finalized promptly.”
As part of the regulatory approval, the two companies have agreed to sign a national security agreement with the federal government.
U.S. Steel and Nippon Steel did not immediately respond to a request for comment regarding what the new project will entail or its value.
“This partnership will bring a massive investment that will support our communities and families for generations to come,” Nippon and U.S. Steel said in a joint statement. “We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.”
The merger would retain and create more than 100,000 jobs, according to a study by Parker Strategy Group commissioned by U.S. Steel.
Additionally, the agreement involves other commitments related to domestic production commitments, trade and the granting of veto power to the U.S. government in the form of “golden shares.” The veto power will allow the U.S. government to oversee key decisions to any changes to the company.
Nippon initially announced plans to acquire U.S. Steel for $14.9 billion in December 2023, but faced opposition from the Biden administration. Then-President Joe Biden blocked the deal in January, citing national security concerns and a negative impact on domestic steel production.
Trump previously opposed the acquisition, saying he would block the deal. The president, however, revived talk of the deal in April, when he ordered the Committee on Foreign Investment in the United States to review the proposal. Last month, Trump announced he supported the deal, calling it a “planned partnership.”
The United Steelworkers have also voiced their opposition to the merger. The labor union said Sunday it had not received a copy of the agreement between U.S. Steel, Nippon and the federal government.
USW said it’s disappointed that Trump reversed course, saying the merger could jeopardize “the future of American steelmaking.” The union added that Nippon refused to promise USW to not transfer production from any of U.S. Steel’s facilities in the country.
“It is left to be seen whether the president’s ‘golden share’ and stated 51 percent control prevents Nippon from doing what has been clear it would do since December of 2023.” USW said in a statement. “Those that ignore the threat, do so at their own peril. The focus of the International union has always been about protecting the members’ job security and employment.”
USW’s labor agreement with U.S. Steel expires Sept. 1, 2026. The union said it’s prepared to engage with Nippon to obtain “a fair contract, one that maintains our existing facilities and recognizes the decades of contributions to the profitability of the company by USW members.”
