NEW YORK: Nippon Steel and US Steel announced Wednesday they have completed a partnership deal in which the US government will essentially have veto power over significant decisions affecting US jobs.

The agreement modifies a transaction originally announced in December 2023 in which Nippon Steel of Japan had agreed to acquire US Steel for $14.9 billion.

But the outright acquisition of the iconic US company sparked bipartisan political opposition, including from President Donald Trump, whose administration worked with the companies on a revamped deal in which the US government will have a “golden share” of the company.

Trump, who railed against the proposed deal throughout the 2024 presidential campaign, last month announced a pivot he described in a May 23 social media post as a “planned partnership” in which Nippon pledged to invest billions of dollars and retain its headquarters in Pittsburgh.

On Wednesday, US Steel filed a notice with US securities regulators to delist its shares on the New York Stock Exchange. The NYSE halted trading, pointing to a “merger effective” order.

“The Companies have now completed the transaction as contemplated by their merger agreement,” Nippon and US Steel said in a joint press release. “The Companies have also entered into a National Security Agreement with the US Government, and US Steel will issue a Golden Share to the US Government.”

AFP