Nippon Steel has completed its acquisition of U.S. Steel, the companies said on Wednesday, more than a year after it was first announced.
Soon after Nippon announced its plans to acquire U.S. Steel in December 2023, the company, based in Pennsylvania, a swing state in the presidential election, became part of a game of political football. The powerful United Steelworkers union pushed back against the deal, and President Joseph R. Biden blocked it over national security concerns.
Last month, President Trump, who had opposed the deal while he was on the campaign trail, said he had approved a transaction that granted the White House a golden share in the company, giving it extraordinary control over the new company as part of a national security agreement.
Mr. Trump and the companies have frequently referred to the deal as a partnership over the past several weeks, fueling mystery on Wall Street and in Washington over its nature. The companies said on Wednesday that they have “now completed the transaction as contemplated by their merger agreement,” effectively a confirmation that the deal is a sale to Nippon.
Shareholders in U.S. Steel had approved an acquisition that would pay $55 a share in cash if it closed.
“Since announcing our deal, I have engaged in extensive dialogue with many stakeholders, including the employees of U.S. Steel, government officials and community leaders,” Takahiro Mori, the vice chairman of Nippon, said in a statement.
David McCall, president of the United Steelworkers union, reiterated concern about the deal. “Our current agreement expires in September 2026, and rest assured, if our job security, pensions, retiree health care or other hard-earned benefits are threatened, we are ready to respond with the full strength and solidarity of our membership,” he said in a statement.
Under the agreement, the U.S. government will retain the right to appoint one independent director on U.S. Steel’s board. A majority of board members will be U.S. citizens.
The deal also gives the White House veto power over a number of company actions, including changing U.S. Steel’s name and headquarters, transferring jobs outside the United States and the acquisition of rivals.
Nippon has also committed to making $11 billion in new investments in U.S. Steel by 2028.
Security experts have described the agreement as among the stronger pacts that U.S. companies usually strike with the government to alleviate security concerns over an acquisition. The inclusion of a golden share, they said, is significant, because the United States has historically only taken stakes in companies that are ailing or uniquely important to its economy, and could send a message about a new U.S. approach to foreign investment.
The companies said in their statement that the deal would “protect and create” 100,000 jobs, based on a study commissioned by U.S. Steel. That includes new U.S. Steel jobs, as well those “protected” by maintaining, and possibly growing, the company’s operations. The figure includes jobs that could be created in relevant industries and communities.
U.S. Steel has 22,000 employees, 14,000 of whom are in North America.
Lauren Hirsch is a Times reporter who covers deals and dealmakers in Wall Street and Washington.
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