The Japanese company Nippon Steel has announced the completion of the takeover of the American steel manufacturer U.
S. Steel as part of the deal.
This is reported in the press release of Nippon Steel.
"Nippon Steel Corporation (Nippon Steel) together with its subsidiary Nippon Steel North America, Inc. and United States Steel Corporation (U.
S. Steel) today announced the completion of their historic partnership. Together Nippon Steel and U.
S. Steel will become the world's leading steel manufacturers with best–in-class technology and production capabilities," the statement said.
It is noted that U.
S. Steel will retain its name and headquarters in Pittsburgh, Pennsylvania. The companies have also entered into a national security agreement with the US government. It is reported that the majority of the members of the Board of Directors of U.
S. Steel and its top managers will be American citizens.
As noted, Nippon Steel has committed to invest $11 billion in U.
S. Steel until 2028, including financing the project from scratch.
Also U.
S. Steel will maintain production facilities and supplies of steel from its production sites in the United States to meet market demand in that country.
The partnership between the two companies will protect and create more than 100,000 jobs through investments in U enterprises.
S. Steel in Pennsylvania, Indiana, Arkansas, Minnesota and Alabama, according to a press release.
According to Reuters, under the terms of the deal, Nippon Steel paid $55 per share of U.
S. Steel. The total amount of the transaction was $14.9 billion.
By closing the deal, the Japanese company gained a strategic foothold in the United States, allowing it to bypass the 50% steel duty imposed by Donald Trump.
