BREAKING NEWS: Nippon Steel finally completes U.S. Steel takeover

After a roller-coaster 18-month process, Nippon Steel Corp has finally acquired United States Steel Corp (U.S. Steel), the two companies announced on June 18, a goal that the Japanese steelmaker had identified as being crucial for its long-term survival as a global steel producer.

"With this partnership, the Nippon Steel Group's annual crude steel production capacity is expected to reach 86 million tonnes, bringing it closer to Nippon Steel's global strategic goal of 100 million tonnes of global crude steel production capacity," it said in the joint statement. Based on the two companies' crude steel production during last calendar year, the deal lifts the combined Nippon Steel and U.S. Steel Group into fourth place in global output rankings, only fractionally behind China's Anyang Steel.

Source: Nippon Steel

Besides Nippon Steel's massive outlay – $14.1 billion to buy U.S. Steel and a commitment to allocate another $11 billion in new investments in U. S. Steel by 2028 (including a new greenfield plant) – Japanese commentators are focussed on the US government's ownership of a 'Golden Share', as Mysteel Global has reported, and the degree of control this gives Washington over the Pittsburgh-based mill's operations.

Nippon Steel Chairman and CEO Eiji Hashimoto, and Vice Chairman Hiroshi Moritaka, are scheduled to hold a press conference on Thursday morning where this unusual aspect of the agreement is certain to be thoroughly explored.

Written by Russ McCulloch, russ.mcculloch@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com