Reuters
Source: Reuters
$14.9 billion bid for U.S. Steel on Friday, capping a tumultuous 18-month effort by the companies that survived union opposition and two national security reviews.
Trump signed an executive order saying the tie-up could move forward if the companies sign an agreement with the Treasury Department resolving national security concerns posed by the deal. The companies then announced they had signed the agreement, fulfilling the conditions of Trump’s directive and effectively garnering approval for the merger.
“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in the statement, thanking Trump.
They added the agreement includes $11 billion in new investments to be made by 2028 as well as governance, production and trade commitments. Nippon Steel will buy a 100% stake in U.S. Steel, a spokesperson for the Japanese company in Tokyo said on Saturday.
The steelmakers provided no detail on the “golden share” they pledged to issue to the U.S. government, raising questions about the extent of U.S. control. U.S. Senator David McCormick of Pennsylvania, where U.S. Steel is headquartered, said last month the golden share would give the government veto power over key decisions relating to the American steel icon.
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