President Donald Trump of the United States has signed an executive order that effectively allows Nippon Steel to acquire US Steel.
According to major foreign media outlets such as the Associated Press on the 13th (local time), the executive order states that if certain conditions are met, such as entering into a National Security Agreement (NSA), security concerns surrounding Nippon Steel's acquisition of US Steel can be sufficiently mitigated. Based on this logic, the order amends the previous prohibition issued during President Joe Biden's administration, contingent upon meeting these conditions.
Afterward, US Steel and Nippon Steel announced in a joint statement that "President Trump has approved the historic partnership between the two companies," confirming the signing of the partnership. They also added that, since all other regulatory approvals have been obtained, the partnership is expected to be established quickly.
They further stated, "We are grateful for the bold leadership and strong support of President Trump and his administration," and expressed anticipation for the fulfillment of the promise to make American manufacturing great again.
According to the Nihon Keizai Shimbun, it appears that Nippon Steel entered into a National Security Agreement with the US government immediately following the announcement of President Trump's executive order.
The National Security Agreement includes provisions requiring Nippon Steel to invest approximately $11 billion (about 15 trillion won) by 2028 and granting the US government a "golden share," which is a stake that allows the government to exercise veto power if it determines that national security interests are being compromised. However, the two companies did not disclose the specific method for granting the golden share to the US government or provide further details about the investment.
Nippon Steel plans to acquire 100% of US Steel's shares and make it a subsidiary, as originally planned, based on this executive order. However, NHK reported that conditions such as not relocating US Steel's headquarters overseas are also likely included.
Previously, in December 2023, Nippon Steel proposed to acquire US Steel for $15 billion, but opposition from the steelworkers' union and others led former President Biden to issue a prohibition. After taking office, President Trump ordered a review of Biden's prohibition in April, and received a report on the matter from the Committee on Foreign Investment in the United States (CFIUS) on May 21.
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