'Historic partnership' finalized between US Steel and Nippon Steel

U.S. Steel announced on Wednesday that its merger with Nippon, Japan’s largest steelmaker, has been finalized. 

“U.S. Steel will remain rooted in the United States and continue to call Pittsburgh home. Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology, and the creation of good-paying jobs across the United States,” U.S. Steel’s CEO Dave Burritt said in a statement.

President Donald Trump approved the merger last week in an executive order. He praised the move as a partnership in which the U.S. would maintain a “golden share” of profits, as the deal will result in expanded investments in Pennsylvania, Indiana, Arkansas, Minnesota and Alabama, according to The Hill. 

The “golden share” provision means that the federal government has a say in certain decisions, such as those affecting domestic steel production and the power to appoint a board member. 

“Together, Nippon Steel and U.S. Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities,” the companies said.

The $15 billion deal will result in what will become the world’s fourth-largest steelmaker. Analysts say that the deal will bring Nippon Steel’s advanced technology to U.S. Steel’s antiquated steelmaking processes, and a commitment to invest $11 billion to upgrade U.S. Steel facilities. Nippon Steel gains access to the vibrant American steel market.