Nippon Steel has emerged as the world's third-largest steel producer by crude steel production. This is due to President Donald Trump's decision to allow Nippon Steel to acquire U.S. Steel, subject to compliance with the "national security agreement."
According to reports from AP and other foreign news agencies on the 14th, President Trump signed an executive order on the 13th (local time) allowing Nippon Steel to invest in U.S. Steel as long as it complies with the terms of the "national security agreement" presented by the U.S. government.
The national security agreement reportedly includes a provision for a so-called "golden share," which allows the U.S. government to exercise veto power if it determines that national security interests are compromised. The method for granting the golden share has not been disclosed.
However, the day before, President Trump stated that he has "complete control" over Nippon Steel's acquisition of U.S. Steel, saying, "51% of the ownership belongs to the U.S."
This means that Nippon Steel will be able to acquire U.S. Steel after about 1 year and 6 months of pursuing the acquisition. Previously, Nippon Steel had proposed to acquire U.S. Steel for $15 billion in December 2023, but faced difficulties due to opposition from steel unions and others.
In particular, ahead of last year's U.S. presidential election, then-Republican candidate Trump and then-President Joe Biden, the Democratic candidate, expressed opposing views in succession. In January of this year, former President Biden even issued a cease-and-desist order for the acquisition.
Subsequently, President Trump directed the Committee on Foreign Investment in the United States (CFIUS) last month to review the acquisition plan again, leading to a turning point. Nippon Steel's proposal for a total of $14 billion in additional investments, including the construction of a new steel mill worth up to $4 billion, was a significant factor.
Nippon Steel is expected to rise to the world's third-largest steel producer by crude steel production as a result of the acquisition of U.S. Steel. In 2023, Nippon Steel's crude steel production was 43.66 million tons, which, when combined with U.S. Steel's 15.75 million tons, would surpass China's Ansteel at 55.89 million tons.
Meanwhile, U.S. Steel, founded in 1901, has been known as a representative steel company in the United States. It was established after merging several steel companies, including "steel king" Andrew Carnegie's enterprises. It was considered the world's largest steel company until the 1960s but suffered from competition from Japan and Europe.