Japan’s Nippon Steel has wrapped up its deal to buy United States Steel, according to a joint statement from the steel companies.
Under the terms of the agreement, Nippon Steel paid $55 per share for the American steel manufacturer. The total value of the deal was $14.9 billion.
US Steel will retain its name and headquarters in Pittsburgh, Pennsylvania. The majority of the company’s board members and top managers will be American.
The deal was completed just days after President Donald Trump reversed a provision by his predecessor Joe Biden that blocked the sale of US Steel to a foreign group, a decision that prompted Nippon Steel to file a lawsuit.
Nippon Steel Chairman and CEO Eiji Hashimoto thanked Trump, adding that the company was “delighted to open a new chapter in the proud history of US Steel.”
“Building on our investment, the transfer of our advanced technologies and the tireless efforts of the management and employees of both companies, Nippon Steel aims to strengthen its position as a leading global steel manufacturer together with US Steel,” he also said.
The acquisition of US Steel will enable the Japanese company to increase its production capacity to 86 million tonnes from the current 63 million tonnes. Nippon Steel has committed to investing approximately $11 billion in the US over the next three years and to building a new steel mill after 2028.
US Steel was formed in 1901 with the participation of financier John Pierpont Morgan and steel magnate Andrew Carnegie and played an important role in the industrialisation of the US in the 20th century. Although it is no longer one of the largest American companies, it remains one of the leading steel producers. Its main customers are automotive companies, manufacturers of household appliances and food packaging.
Analysts’ assumptions on Nippon Steel
First announced in December 2023, the acquisition was hampered by opposition from steelworkers’ unions and tensions related to the US election campaign. However, for Nippon Steel, this deal is central to its medium- and long-term growth strategy in light of growing demand for steel in the US driven by the development of electric vehicles and infrastructure renewal programmes.
In contrast, demand in Japan is expected to fall due to population decline. In this context, the new tariffs imposed by Trump on steel imports, increased from 25 to 50 per cent, make it strategically more advantageous to produce it directly in the US.
However, some analysts have expressed concern about the financial burden resulting from the deal. According to Yuji Matsumoto, an analyst at Nomura, acquisition costs, post-merger investments and electric furnace plants in Japan will put pressure on the group’s finances. Other analysts highlight Nippon Steel’s limited experience in independently managing operations of this scale, recalling the failure of a previous acquisition in Thailand.
