Nippon Steel Completes $14.9bn Acquisition of US Steel
Deal News | Jun 19, 2025 | EIN
Nippon Steel has successfully completed a $14.9 billion acquisition of US Steel, a deal that strategically positions the newly formed entity as a leading global steel manufacturer with enhanced technological and manufacturing capabilities. The acquisition aligns with a previously laid out merger agreement and aims to elevate Nippon Steel's annual crude steel production capacity to 86 million tonnes, with sights on achieving 100 million tonnes. The partnership is set to protect and create over 100,000 jobs through investments in the US, particularly impacting states like Pennsylvania, Indiana, Arkansas, Minnesota, and Alabama. A National Security Agreement (NSA) affirms US Steel's operational autonomy and includes a $11 billion investment by Nippon Steel in US facilities by 2028. The agreement also mandates that US Steel retains its headquarters in Pittsburgh and that its leadership predominantly consists of US citizens. The US Government, through a 'golden share,' holds significant governance rights, ensuring the deal aligns with national interests. Nippon Steel and US Steel envision growth bolstered by transformative investments and cutting-edge technology.
Sectors
- Steel Manufacturing
- Mergers and Acquisitions
- National Security
Geography
- United States – The acquisition impacts steel production across multiple US states and involves US Steel, which is headquartered in Pittsburgh, Pennsylvania.
- Japan – Nippon Steel, the acquiring company, is based in Japan, making this a cross-border transaction.
Industry
- Steel Manufacturing – This industry classification is directly relevant as the article discusses the acquisition of US Steel by Nippon Steel, both of which are key players in the steel manufacturing sector.
- Mergers and Acquisitions – The acquisition of US Steel by Nippon Steel is a major transaction, marking it as a significant event in the Mergers and Acquisitions sector.
- National Security – The National Security Agreement and the involvement of a 'golden share' for the US Government highlight the intersection of industry with national security interests.
Financials
- $14.9 billion – The acquisition price for US Steel by Nippon Steel.
- Y2.17 trillion – The equivalent acquisition price in Japanese Yen.
- $11 billion – Nippon Steel's committed investment in US facilities by 2028 under the NSA.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nippon Steel | Acquirer | Company | A leading Japanese steelmaker acquiring US Steel to enhance its global production capabilities. |
| US Steel | Target Company | Company | An American integrated steel producer headquartered in Pittsburgh, Pennsylvania. |
| Citi | Financial Advisor | Company | Served as a financial advisor to Nippon Steel. |
| Ropes & Gray | Legal Advisor | Company | Provided legal counsel to Nippon Steel. |
| PJT Partners | Advisor | Company | Advised Nippon Steel during the acquisition process. |
| Akin Gump Strauss Hauer & Feld | Legal Advisor | Company | Provided legal advice to Nippon Steel. |
| Barclays Capital | Financial Advisor | Company | Served as a financial advisor to US Steel. |
| Goldman Sachs | Financial Advisor | Company | Advised US Steel on the financial aspects of the transaction. |
| Evercore | Advisor | Company | Provided advisory services to US Steel. |
| Milbank | Legal Advisor | Company | Offered legal counsel to US Steel. |
| Covington & Burling | Advisor | Company | Provided advisory services to US Steel. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | Provided legal advice to US Steel. |
| US Government | Government | Government | Involved through the issuance of a golden share ensuring strategic governance rights. |
| Eiji Hashimoto | CEO | Person | Representative director and CEO of Nippon Steel. |
| Dave Burritt | CEO | Person | CEO of US Steel. |