US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com - Nippon Steel Corporation (TSE: 5401) has finalized its acquisition of United States Steel (NYSE:X), the companies announced Wednesday. The deal, valued at approximately $14.9 billion, creates what the companies describe as a "world-leading steelmaker."
Under the terms of the agreement, U.S. Steel will maintain its name and Pittsburgh headquarters. The companies have entered into a National Security Agreement with the U.S. government that includes several key provisions to address national security concerns.
Nippon Steel has committed to invest approximately $11 billion in U.S. Steel by 2028, including funding for a greenfield project. The agreement stipulates that U.S. Steel will remain U.S.-incorporated with a majority of American citizens on its board and U.S. citizens in key management positions, including CEO.
The U.S. government will receive a Golden Share in U.S. Steel, granting it the right to appoint one independent director and requiring presidential consent for certain decisions, including production transfers outside the United States, headquarters relocation, and facility closures.
"This is a momentous day for our country, our communities, and the American steel industry," said U.S. Steel CEO Dave Burritt in the press release statement.
With this acquisition, Nippon Steel Group’s annual crude steel production capacity is expected to reach 86 million tons, advancing toward its strategic goal of 100 million tons of global production capacity.
The companies claim the partnership will protect and create more than 100,000 jobs through investments across U.S. Steel’s operations in Pennsylvania, Indiana, Arkansas, Minnesota and Alabama, according to a study commissioned by U.S. Steel.