President Donald Trump, in an executive order Friday, approved U.S. Steel’s merger with Japan’s Nippon Steel.
The merger’s approval came after the two companies signed a national security agreement with the U.S. government. The deal says Nippon will make $11 billion in new investments by 2028, which includes initial spending on a greenfield project that will be completed after 2028.
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“Today’s executive order ensures U.S. Steel will remain in the great commonwealth of Pennsylvania, and be safeguarded as a critical element of America’s national and economic security,” Kush Desai, a White House spokesman, said in a statement.
The agreement also gives the government a “golden share” and makes certain commitments regarding governance, domestic production, and trade.
“All necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly,” the two companies said in a statement.
Former President Joe Biden blocked the merger in January, citing national security concerns, despite Japan being a key U.S. ally in the Asian Pacific region.
Trump had opposed the merger in the 2024 campaign, but softened his tone on it in April after ordering a review of it. In May, Trump called for the two companies to enter a “partnership.” Trump claimed the merger would create at least 70,000 jobs and pump $14 billion into the U.S. economy.
INSIDE THE LOBBYING EFFORTS DRIVING THE US STEEL ACQUISITION
“I am proud to announce that, after much consideration and negotiation, U.S. Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” Trump wrote on social media. “For many years, the name, ‘United States Steel’ was synonymous with Greatness, and now, it will be again.”
Ahead of the deal, Trump also announced plans to raise his tariffs on steel and aluminum imports from 25% to 50%, placing additional pressure on Nippon Steel to complete the merger to secure its access to the American market via U.S. Steel.