Trump greenlights Nippon’s $14.9 bn bid for US Steel after ‘national security’ pact
Nippon Steel and US Steel said that the agreement with the US government would pave the way for over $11 billion in investments in the country by 2028
 "Trump greenlights Nippon’s $14.9 bn bid for US Steel after ‘national security’ pact")
US President Donald Trump has greenlighted a $14.9 billion partnership between US Steel and Nippon Steel, reversing a block put in place by the administration of his predecessor Joe Biden. The companies released a statement on Friday (June 13), revealing the Trump administration’s decision.
“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the statement said. It said that the two companies had also struck a national security agreement with the US government.
The White House also released a statement, saying the decision would help protect American steel jobs.
“President Trump promised to protect American Steel and American Jobs — and he has delivered on that promise,” White House spokesperson Kush Desai said in a statement. “Today’s executive order ensures US Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America’s national and economic security."
The national security agreement
The companies said that the agreement with the US government would pave the way for over $11 billion in investments in the country by 2028.
The deal “provides that approximately $11 billion in new investments will be made by 2028, which includes the initial investment in a greenfield project that would be completed after 2028,” the companies said in their statement.
The deal also features a so-called “golden share” that would allow the US government to control how the partnership is managed and operated on American soil.
The deal comes two weeks after Trump appeared before steelworkers in Pennsylvania and promised a “blockbuster agreement”.
“We’re going to be so successful. You have just, you have just started, you watch, we’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company, you’re going to stay an American company,” Trump said at a US Steel plant just outside of Pittsburgh.
US Steel warned that it might have to shut down some of its older, unionised factories if a deal doesn’t go through and it can’t get the money needed to update its facilities.
Concerns
The United Steelworkers (USW) union is worried that Nippon Steel’s long-term plan is to move production to its non-union factories in Texas or bring in steel from Japan to be finished in the US, which would stop integrated steel production at US Steel.
However, Nippon Steel has promised to respect the union’s contract with US Steel and to invest billions of dollars in factories in Pennsylvania and Indiana.
US Steel legacy
US Steel was once a giant of American industry. When it was founded in 1901, it became the first company worth $1 billion and was the most valuable company in the world. Its steel helped build America, from skyscrapers in cities to cars on highways and appliances in millions of homes.
But US Steel has struggled in recent years. It’s no longer the biggest steelmaker in the US and now has only 14,000 employees in the country, 11,000 of whom are USW members.
Originally published on First Post
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