The companies said they had entered into an agreement with the U.S. government to alleviate any national security concerns.
U.S. Steel and Nippon Steel announced on Friday that they had entered into an agreement with the U.S. government to seal the terms of a “partnership” between the companies, more than a year after the Japanese steel maker first tried to buy its U.S. competitor.
Former President Joseph R. Biden Jr., under pressure from the United Steelworkers union, blocked the deal on the basis that it was a threat to national security. President Trump, who also initially opposed the deal, reversed himself and decided to look for a way to revive it.
The companies referred to the deal as a partnership, echoing language that Mr. Trump used in describing the transaction he blessed three weeks ago. But U.S. Steel has not indicated to shareholders that it has altered the $14.9 billion sale to Nippon Steel that they approved in April last year.
“We thank President Trump and his administration for their bold leadership and strong support for our historic partnership,” the companies said in a statement. “This partnership will bring a massive investment that will support our communities and families for generations to come.”
The companies said they had entered into agreement with the U.S. government to alleviate any security concerns posed by the deal, known as a national security agreement, which calls for roughly $11 billion in new investments by 2028.
The deal will also give the U.S. government a “golden share” in the company, a rarely used practice through which the government takes a stake in company. In the United States, the government has typically taken a stake only in companies that are ailing or in particular need of government attention, like General Motors during the 2008 financial crisis.
This is a developing story. Check back for updates.