U.S. to Retain Control in Nippon Steel–U.S. Steel Deal Under National Security Agreement

The U.S. government will retain veto power over key decisions in the Nippon Steel–U.S. Steel deal through a national security agreement, according to Senator David McCormick of Pennsylvania. The agreement includes a U.S.-based CEO, a majority-American board, and a “golden share” giving the U.S. government approval rights over certain board members and production changes. This provision is designed to protect American jobs and ensure production levels remain stable.

The $14.9 billion bid by Japan’s Nippon Steel, offering $55 per share for U.S. Steel, has faced political opposition. Both President Biden and President Trump previously opposed the deal, citing national interest. However, Trump recently appeared to support it, stating it could create 70,000 jobs and inject $14 billion into the U.S. economy. U.S. Steel shares rose 1.6% to $52.84 following the news.

Nippon Steel first proposed the acquisition in December 2023. In a September 2024 term sheet submitted to the Committee on Foreign Investment in the U.S. (CFIUS), the company pledged to maintain a majority-U.S. board and allow production cuts only with approval from independent U.S. directors. The agreement also mandates that core U.S. Steel managers be U.S. citizens.

While the Biden administration initially blocked the deal on national security grounds—prompting a lawsuit—the Trump administration reopened the review in April. Despite some mixed signals, Trump confirmed the deal would remain under U.S. control, easing investor concerns.

White House spokesperson Kush Desai stated that the President plans to visit Pittsburgh to "celebrate American Steel and American Jobs." Nippon Steel and U.S. Steel have not commented further. The national security agreement reflects Washington’s effort to safeguard strategic industries while welcoming foreign investment under strict conditions.