President Donald Trump signed an executive order on June 13 paving the way for Japan-based Nippon Steel to acquire U.S. Steel as long as the company remains “in compliance” with a national security agreement.
The companies announced that they had entered a national security agreement with the U.S. government, which mandates $11 billion in new investments by 2028.
“This partnership will bring a massive investment that will support our communities and families for generations to come,” the companies announced in a joint statement. “We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.”
The agreement brings the companies one step closer to completing the $14.3 billion sale of U.S. Steel that the companies agreed to in December 2023.
The companies also said the partnership will bring investments in steelmaking and protect and create more than 100,000 jobs.
In January, former President Joe Biden issued an executive order to halt Nippon’s acquisition of U.S. Steel, saying it would place America’s largest steel producers under foreign control and create a “national security” risk.
In February, Trump said that Nippon Steel would look to invest in U.S. Steel, rather than own the iconic American company.
“Steel powers our country: our infrastructure, our auto industry, and our defense industrial base,” he said. “Without domestic steel production and domestic steel workers, our nation is less strong and less secure.”
Trump doubled U.S. tariffs on steel imports to 50% on June 4.
The takeover will set up the ailing American steel icon to receive the critical investment, and allow Nippon Steel to capitalize on a host of American infrastructure projects. It also absolves the Japanese firm of paying $565 million in breakup fees if the companies failed to secure approvals.
This article originally appeared on USA TODAY: U.S. Steel and Nippon Steel reach merger agreement with US government
