In a landmark shift for American industry, US Nippon Steel has officially acquired US Steel for $14.1 billion, bringing an end to over a century of independent American ownership. The Japanese steel giant finalized the purchase at $55 per share, as announced by both companies on Wednesday. Despite the change in ownership, US Steel will retain its historic name and continue to be headquartered in Pittsburgh, Pennsylvania.
Once the world’s most valuable corporation and a pillar of U.S. manufacturing strength, US Nippon Steel transition to foreign ownership has sparked both celebration and concern. While Nippon now holds 100% ownership, the agreement allows the U.S. government a significant degree of oversight, including veto power over decisions to idle plants or cut production and jobs. This clause, reportedly added under President Donald Trump’s administration, aims to safeguard American labor interests.
Trump Approves Revised Deal After Initial Opposition
The acquisition received final approval from President Donald Trump, reversing his initial campaign trail stance against the sale. Trump emphasized that the final agreement transformed the deal into an “investment” rather than a full foreign purchase, stating, “It will be controlled by the United States, otherwise I wouldn’t make the deal.” While the deal includes promises of $14 billion in investment by Nippon, only $11 billion has been formally committed through 2028.
President Joe Biden had previously blocked the deal in his final weeks in office on national security grounds. However, after Trump assumed office, negotiations were reopened and revised to include provisions favoring U.S. jobs and facilities. At a rally in Pittsburgh, Trump assured steelworkers the new deal would benefit them directly, declaring, “No layoffs and no outsourcing whatsoever,” and pledging that blast furnaces would remain operational for at least a decade.
Labor Union Pushback and Industry Legacy
Despite political assurances, the United Steelworkers (USW) union has maintained its opposition. While some local officials have welcomed the revised deal, the union remains skeptical of the long-term protections offered. In a statement released Sunday, the USW criticized the arrangement, suggesting the retention of US Steel’s name and logo may merely serve as a symbolic gesture. “It seems it will be no more than a smoke screen to allow a wholly-owned privately held subsidiary of a Japanese corporation to be called ‘American,’” the statement read.
US Nippon Steel, founded in 1901, was the first U.S. company to reach a $1 billion valuation and played a critical role in building the nation’s infrastructure and military might. However, the company has faced a steady decline since its mid-20th-century peak. Today, it employs approximately 14,000 workers in the United States, including 11,000 union members — a fraction of its historic workforce.
The sale marks a turning point in the trajectory of a once-dominant symbol of American industrialism, now entering a new era under foreign stewardship.
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