Politics
NEW: Trump Greenlights US Steel Merger, Projects 100,000 New Jobs
President Donald Trump issued an executive order Friday that approves U.S. Steel’s merger with Japan’s Nippon Steel through a National Security Agreement (NSA).
The NSA includes an agreement for more than $11 billion in new steelmaking investments in the United States by 2028, which is projected to create more than 100,000 new jobs for American workers. The deal also gives the U.S. government the “golden share” of the merger, which includes commitments to governance, domestic production and trade, Fox Business reported.
Trump’s order brings what has been a grueling, 18-month saga ever closer to a conclusion after two previous national security reviews and union opposition to an outright acquisition by Japan. The order will now allow a merger to go forward if the companies sign an agreement with the Treasury Department resolving national security concerns surrounding the deal.
“This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” U.S. Steel and Nippon Steel companies said in a joint statement.
The companies further revealed that they had completed the review process with the U.S. Department of Justice, stating that “all necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly.”
In the order, Trump cautioned that the merger may still pose national security risks that have yet to be resolved. “I additionally find that the threatened impairment to the national security of the United States arising as a result of the Proposed Transaction can be adequately mitigated if the conditions set forth in section 3 of this order are met,” Trump wrote, expressing optimism that an agreement will be reached.
As the merger heads towards final approval, the Committee on Foreign Investment in the United States (CFIUS) is authorized to implement and enforce measures to protect U.S. national security until the partnership is finalized.
While addressing thousands of steel workers in Pittsburgh, Pennsylvania last week, Trump pledged that the deal will allow Nippon Steel to invest in U.S. Steel without an outright acquisition. Nippon Steel initially proposed buying U.S. Steel in 2023 for $14.9 billion, though the deal was put on hold due to political and union opposition.
“It’s great for the company, it’s great for the community and great for Western Pennsylvania,” said U.S. Steel manager Josh Matthews.
The United Steelworkers Union (USW) is not yet sold on the agreement. “Whatever the deal structure, our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” USW International President David McCall said in a statement.
McCall went on to say that the union would like to see the final deal on paper before reaching a final conclusion. “Any final deal that may emerge from discussions between the merger parties and the federal government must be viewed through that lens, and not the lens of wishful thinking that has been adopted by far too many politicians and others. … Our members know from decades of negotiating contracts: Trust nothing until you see it in writing.”
