U.S. Steel, Nippon finalize $14.9B deal

The combined company will become the world’s fourth-largest steelmaker.

JACK TROY
TribLive

Japan’s Nippon Steel has finalized its $14.9 billion takeover of U.S. Steel, the companies announced Wednesday, as they unveiled details about the deal, which amounts to a tightly monitored merger.

To win government approval, the companies also have entered a national security agreement meant to mitigate worries about Nippon having control over an iconic domestic steelmaker.

Most notably, the pact calls for Nippon to invest $11 billion in the U.S. Steel facilities through 2028 and gives the U.S. president vast authority to veto major business decisions.

U.S. Steel and Nippon agreed to merge in December 2023, but a tortured political process kept that from happening right away. The deal has withstood two national security reviews, relentless attacks by the United Steelworkers union and a block by former President Joe Biden.

President Donald Trump, who was once a vocal opponent of selling U.S. Steel to a foreign company, rescued the merger last month by blessing a “partnership” between the American manufacturer and Nippon, first on social media and later during a rally at the Irvin Works steel processing plant in West Mifflin.

On Friday, he signed an executive order permitting the companies to link up, so long as the national security agreement got signed.

The term “partnership,” though, kept the arrangement shrouded in confusion. Until Wednesday, neither Trump nor the companies had said precisely whether it amounted to a merger, investment or some combination of the two. Even the United Steelworkers, representing more than 3,000 employees at the Mon Valley Works, said it was left out of the loop.

But now, the certainty that has been in short supply throughout this roughly 18-month saga has arrived.

Nippon’s other commitments include keeping U.S. Steel headquartered in Pittsburgh, appointing American citizens to top U.S. Steel management positions and a majority of board seats, keeping U.S. Steel’s production high enough to meet domestic demand and allowing U.S. Steel to pursue trade action against foreign companies for acts like illegal dumping.

As for the “golden share,” the federal government can block Nippon from reducing pledged capital investment, changing U.S. Steel’s name, incorporating U.S. Steel outside the country, transferring jobs from the country, acquiring competing American businesses and, in some cases, closing existing facilities.

Almost all U.S. Steel workers can also expect a $5,000 closing bonus paid by Nippon — not Trump, as he seemed to suggest during the West Mifflin rally.

“I am delighted that we have made this day a reality,” said Takahiro Mori, Nippon’s vice chairman and incoming chairman of U.S. Steel’s board of directors. “We share President Trump’s commitment to protect the future of the American steel industry, American workers and American national security, and we look forward to building a stronger and brighter future for U.S. Steel.”

U.S. Steel CEO David Burritt called the occasion “a momentous day” that will keep the company rooted in Pittsburgh while allowing for the introduction of “cutting-edge technology” and additional “good-paying” jobs.

United Steelworkers International President David Mc-Call said he found Trump’s control over the company “startling” and vowed to fight to preserve any jobs and ben- efits that may be threatened during contract talks.

“We will continue watching, holding Nippon to its commitments,” McCall said. “And we will use the most powerful tool workers have against global corporations: collective bargaining.”

Allegheny County Executive Sara Innamorato welcomed the deal.

“Keeping local jobs, honoring labor agreements, meeting all regulatory requirements and becoming a better community partner are all worthwhile outcomes of this deal,” she said.

Rep. Summer Lee, D-Swissvale, celebrated the deal as well, but noted it must be judged by outcomes, especially in Mon Valley communities that “have seen far too many lofty commitments fade after the cameras leave.”

The Breathe Project, a Pittsburgh- based environmental group, called on U.S. Steel and Nippon to “end the ongoing, severe, negative impacts in Mon Valley communities” caused by emissions from the outdated steel plants. It also requested a meeting with corporate leaders.

State Sen. Nick Pisciotta- no, D-West Mifflin, said his “hope is that this new era for US Steel can be a new era for all of us in the Mon Valley.”

“Throughout the process of Nippon Steel’s acquisition of U.S. Steel, I have been focused on protecting the union jobs at the Mon Valley Works and ensuring the Mon Valley communities were not left behind,” Pisciottano said. “Nippon’s planned investments have the potential to jump-start an exciting new era in our region’s long history of manufacturing. I look forward to working with Nippon and U.S. Steel to ensure that the benefits of this poten tial renaissance reach every worker, neighborhood, and resident in the Mon Valley.”

U.S. Steel has a long his- tory of fines and settlements related to pollution from the Mon Valley Works totaling nearly $64 million since the start of 2020, by the Breathe Project’s count.

Nippon is Japan’s largest steelmaker. U.S. Steel is a top player in its respective market, though the U.S. makes up a small portion of global steel production. The merger consolidates Nippon’s position as one of the world’s preeminent steelmakers.