US Steel Delisted from NYSE
Now a Subsidiary of Nippon Steel
Nippon Steel has completed its acquisition of the American steel company US Steel, making it a wholly owned subsidiary.
According to reports from Nikkei and other outlets on June 18 (local time), Nippon Steel has completed all procedures required for the acquisition of US Steel and has paid the acquisition cost of $14.1 billion.
Nippon Steel announced its intention to acquire US Steel in December 2023, and has finalized all related procedures after one year and six months. Nippon Steel has acquired all shares of US Steel, and US Steel was delisted from the New York Stock Exchange on the same day.
According to Nikkei, US Steel will be placed under the authority of Nippon Steel's New York-based subsidiary. Nippon Steel Chairman Hashimoto Eiji emphasized, "Through large-scale investment, the introduction of advanced technologies, and the efforts of our management and employees, we will firmly establish our position as the world's leading steelmaker."
In connection with the acquisition of US Steel, Nippon Steel announced that it would issue a single "golden share" to the US government, which would grant veto power over important management matters. Regarding this, US Secretary of Commerce Howard Lutnick recently posted on X (formerly Twitter) that the US, through the golden share, will have the right to veto the relocation of US Steel's headquarters from Pittsburgh, Pennsylvania, any change to the company's name, and any reduction, withdrawal, or delay of Nippon Steel's investment in US Steel. He also added that the US may exercise veto power over the transfer of domestic production facilities or employment overseas, as well as plant closures or suspensions, except for general operational stoppages such as facility maintenance.
Previously in Japan, there had been some concerns that although Nippon Steel's acquisition of US Steel would provide a foothold for full-scale entry into the US market, the golden share issued to the US government could become an obstacle to future management. Nippon Steel pursued the acquisition of US Steel with the US market in mind, as it determined that it could not survive by relying solely on the shrinking domestic market.
Nikkei commented, "The focus will be on whether Nippon Steel can generate enough profit to cover its massive investment," and explained, "Through US Steel, Nippon Steel will secure a large-scale production base in the US and be able to supply high-quality products manufactured locally."
With the acquisition of US Steel, Nippon Steel's crude steel production volume will increase from 43.64 million tons last year to 57.82 million tons. While its global ranking remains at fourth place, it is now closely trailing Ansteel Group of China, which is ranked third with 59.55 million tons.
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