On Wednesday, Nippon Steel Corporation officially finalized its acquisition of U.S. Steel, a major American steel producer. The company invested approximately 14.1 billion USD to secure full ownership of U.S. Steel, completing all necessary procedures and incorporating it as a wholly-owned subsidiary. Despite facing political hurdles that delayed the process for nearly 18 months since the initial announcement, Nippon Steel ultimately achieved its original goal of complete ownership.
Nippon Steel acquired all outstanding shares of U.S. Steel at 55 USD per share. Consequently, U.S. Steel has been delisted from the New York Stock Exchange (NYSE). The company will now operate under Nippon Steel’s U.S.-based subsidiary in New York. However, U.S. Steel’s headquarters will remain in Pittsburgh, Pennsylvania, and the company will retain its current name for the foreseeable future.
On the same day of the acquisition announcement, Nippon Steel also announced that Takahiro Mori, the Vice Chairman and Vice President who spearheaded the acquisition, will also assume the role of Chairman of US Steel’s board of directors. Furthermore, the company disclosed details regarding the golden share (a preferred stock granting veto power) issued to the U.S. government. This golden share grants the U.S. government veto power over critical management decisions.
Prior to the acquisition, Nippon Steel entered into a national security agreement with the U.S. government. The company stated that both the golden share and the national security agreement stipulate that the U.S. government has the right to nominate one director to U.S. Steel’s board. Additionally, key executive positions, including the CEO, must be filled by U.S. citizens.
