The deal, which has many important details that Iron Out can, by the best steel maker in Japan creates a huge global competitor and helps revive the competitiveness of US Steel.
After 18 months of presidential orders, lawsuits, and a hot election campaign, Nippon Steel in Japan dominates the American steel. The deal, which constitutes the fourth largest Fuladhist maker in the world, was completed on June 18, and it is irony that the conditions were basically the same as those that the two companies agreed in December 2023: $ 55 per share per share 100 % of suspended shares, or $ 14.9 billion.
“This partnership guarantees that the United States retain steel in its name and iconic headquarters in Pittsburgh, Pennsylvania, and that it will continue to be mined, melt, and made it in America for future generations,” Nippon and the United States announced in a statement.
For the explorer, the deal is expensive and ambitious. A huge bonus of an American company has paid a long -term landing path; Earlier this year, USX shares were traded at $ 30 per share. But Nippon Steel also promised to invest $ 11 billion in renewing and upgrading US steel facilities by 2028, including building a new small mill-it will create 100,000 new jobs-and import some innovative technologies to its new American operations.
Tiago Vespoli, chief research analyst at Wood Mackeenzie, says if all the two companies persist, the deal may be “changing toys” for both. At one time, he says Nippon Steel makes a more powerful competitor in the world, while giving us a strong opportunity to restore his competitiveness, including against Cleveland Clevoz, the great competitor who previously offered his purchase.
Kyle Lunden, the main consultant for minerals and mining at Wood Mackeenzie, is noticed, and her experience comes to the table in more efficient methods in the steel industry, including direct iron (DRI) and EAFs: “Nippon Steel is a large, very experienced and very well -known operator in the world.” Us Steel offers the Big River Steel facility in Osceola, Arkansas, which produces high -quality electric steel, indicating that the two companies complement each other in ways that can make them more sophisticated.
Nippon Steel has publicly searched for growth for several years, since its local market is not growing, and that the purchase of American steel determines a large presence for it in one of the three largest steel markets in the world through demand – with freedom from concern about Washington’s tariff policy. It is also a “truly intercontinental deal”, as Lundin notes, since US Steel has one of the largest integrated solid facilities in Central Europe, in Košice, Slovakia. As a global product, the Nippon Steel transaction does not make much larger – it is still the fourth largest in the world – but the company stands out as a more dramatic global competitor, especially against the giant of industry, Arceelormital.
Eyes on the golden government share
However, the future of the two companies – and even some details of the deal itself – may be seen. “Between the actual structure of the deal, and only after some strategic considerations, there is a lot that was filled about the edges, but there are still a lot of unknown also,” Lundin notes.
The full details about the share of the golden government that has been discussed a lot, which were mentioned in the National Security Agreement signed by President Trump a few days ago, still abandoning the country. It is said that the government will obtain the veto (“approval rights”) on matters such as closing, inactivity, and transfer of jobs or production outside the United States – but there is no actual financial share in the company. The June 18 announcement still refers to the new ownership, as a “partnership”, despite the fact that the Japanese acquisition has all the shares of all United States.
The union, which represents a large majority of American steel employees, the United Nations workers, has taken a parking lot after they strongly opposed this deal, but the collective negotiation agreement with the company ends in September 2026. This gives the new administration-which will benefit that it will not include the current CEO David Burritt-of more than a year to prove that it can maintain it for new investment.
The biggest question mark may be related to the importance of the golden session, unlike the details. Depending on the position of management in power in Washington, the unusual arrangement can be “unusual”, as Lundin notes, “or it may completely change the course of how the American steel works in specific decisive decision points for its growth or survival in the future.” Indeed, Nippon Steel has proof of billions of dollars that “making internal decisions would be compatible with everything that the US government believes in some unlimited points on the line.”
Will the strategic plans for the new owner change? If so, how much future management absorbs? The next chapter began with the 124 -year -old epic in the United States.
