Nippon Steel has officially acquired 100% ownership of US Steel, once the world’s most valuable company and a symbol of American industrial strength. The acquisition, initially announced in December 2023, is valued at $14.1 billion, with Nippon paying $55 per share. Despite the complete ownership transfer, US Steel will retain its name and continue to be headquartered in Pittsburgh, Pennsylvania, preserving its longstanding identity.
Promises Made But Doubts Remain as Workers Assess US Steel Ownership Change
An unusual component of the final agreement is the U.S. government’s enhanced role in overseeing major operational decisions. This includes granting President Donald Trump veto authority over decisions related to plant closures, production cuts, and staffing changes. While the deal was structured as a full acquisition, the arrangement is framed to give the U.S. strategic control, addressing national security and economic concerns associated with foreign ownership of a key American industry.
Nippon Steel Takes Full Control of US Steel as Trump Secures Veto Power and Jobs PromisesInitially, both President Joe Biden and Donald Trump opposed the deal, with Biden blocking it on national security grounds during his final weeks in office. However, once in office, Trump reversed course, approving the acquisition after Nippon promised additional investments totaling $14 billion, though only $11 billion in investments through 2028 are formally committed. Trump rebranded the deal as an “investment” rather than a takeover, emphasizing it would remain under U.S. control and benefit American workers.
Promises Made But Doubts Remain as Workers Assess US Steel Ownership Change
At a rally held at a US Steel facility near Pittsburgh, Trump told workers the deal would protect their jobs and production levels, assuring “no layoffs and no outsourcing whatsoever.” He claimed repeated rejections had led to a significantly improved agreement, tailored to benefit American labor. Despite these reassurances, the United Steelworkers union has remained skeptical, questioning whether the promises and oversight truly safeguard American jobs and industry standards under foreign ownership.
US Steel, founded in 1901, once represented American industrial leadership, supplying vital materials for automobiles, infrastructure, and wartime production. However, decades of decline have diminished its stature — it is no longer the top U.S. steelmaker and currently employs only 14,000 American workers, including 11,000 USW members. While the acquisition marks a new chapter, it also highlights the long-term challenges faced by once-dominant American manufacturing giants in a globalized economy.
