Nippon to Close U.S. Steel Deal After National-Security Pact With Trump
Japanese steelmaker agreed to pay $14.1 billion to buy Pittsburgh company in 2023
Updated June 13, 2025
Key Points
U.S. Steel shares jumped 5% after hours.
Nippon Steel plans to complete its purchase of U.S. Steel after reaching an agreement with the Trump administration to resolve national-security concerns.
The Tokyo-based steelmaking giant beat out rival steelmakers in a bidding competition with a $14.1 billion offer in December 2023, but was blocked from completing the purchase by then President Joe Biden in January on national-security grounds.
The pact with the Trump administration includes an issuance of a so-called golden share to the U.S. government, giving it authority over the Pittsburgh-based steelmaker’s production and trade matters.
The agreement also calls for Nippon Steel to make around $11 billion in new investments over the next three years. A commitment to build a new steel mill after 2028 would boost the total investment to $14 billion.
“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,” a White House spokesman said.
The deal, which President Trump has repeatedly called a partnership, stands to reshape the American steel industry. Nippon Steel is a deep-pocketed player that plans to expand production and rejuvenate U.S. Steel’s aging operations that have lagged behind newer competitors’ plants for decades.
“This partnership will bring a massive investment that will support our communities and families for generations to come,” the companies said in a joint statement. They said that the transaction has received all regulatory approvals and it is expected to be finalized promptly.
U.S. Steel shares jumped around 5% to $54.84 in after-hours trading Friday. Nippon Steel agreed to pay investors $55 a share.
Trump’s executive order Friday allowing the deal to move forward followed months of discussions between administration officials and Nippon Steel executives. Trump had criticized the deal during his campaign for a second term last year, but softened his opposition as Nippon Steel agreed to increase its investments in U.S. Steel’s plants.
The executive order said that while the acquisition could threaten national security, the agreed-upon enforcement and monitoring measures mitigate that risk.
The United Steelworkers union said it couldn’t comment without knowing what is in the national-security agreement. The union’s leadership has been opposed to the sale.
Some local union officials have opted to support Nippon Steel’s plans, fearing that U.S. Steel would close mills if the transaction fell apart. The company employs about 14,000 people in the U.S.
The acquisition will allow Nippon Steel, the world’s fourth-largest steelmaker, to become a major supplier of American-made steel. However, steel prices in the U.S. have weakened in recent months after buyers stocked up in advance of additional tariffs driving up prices for imports. Manufacturers have also been cautious about ramping up purchases, bracing for a softening economy.
Trump last month raised tariffs on imported steel and aluminum to 50% from their previous level of 25%, a move he said would protect American steelmakers like U.S. Steel and protect jobs in the industry.
Write to Bob Tita at robert.tita@wsj.com