Nippon Steel + US Steel

Timeline

In December 2023, Nippon Steel Corporation, Japan's largest steelmaker, announced plans to acquire United States Steel Corporation (U.S. Steel) for $14.1 billion, equating to $55 per share—a 40% premium over U.S. Steel's stock price at that time. The proposal included maintaining U.S. Steel's headquarters in Pittsburgh and honouring all existing union agreements. (source)

The acquisition faced immediate scrutiny due to national security concerns and the strategic importance of the U.S. steel industry. In March 2024, President Joe Biden expressed opposition, stating that U.S. Steel should remain domestically owned to safeguard national security and supply chain resilience. (source)

Despite this, Nippon Steel continued its efforts to secure approval, proposing measures such as granting the U.S. government veto power over any reductions in U.S. Steel's production capacity. (source)

In April 2024, U.S. Steel shareholders overwhelmingly approved the acquisition, with over 98% voting in favour. However, the deal required regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Department of Justice. By December 2024, CFIUS had referred the decision to President Biden after failing to reach a consensus. (source) (source)

On 3 January 2025, President Biden officially blocked the acquisition, citing national security concerns. In response, U.S. Steel and Nippon Steel filed lawsuits against the U.S. government, alleging that the decision violated due process and was politically motivated. (source) (source)

The blockage of this deal has significant implications for both companies. Nippon Steel faces a $565 million breakup fee and may need to reassess its growth strategy, while U.S. Steel must explore alternative options to address its financial challenges. (source)