Nippon Steel completed its purchase of all U.S. Steel common shares for about $14.2 billion and signed a national security agreement with the U.S. government. It committed about $11 billion in new investment in U.S. Steel by 2028, including a greenfield project. U.S. Steel issued a golden share to the government, which lets it appoint one independent director and veto steps such as cutting the pledged investment, moving the headquarters or shifting production abroad. Financing Nippon Steel paid for the deal with a bridge loan of about 2 trillion yen that had to be repaid within a year. It then replaced the bridge in stages. A committed subordinated loan with a limit of 500 billion yen was drawn on September 18, 2025, to repay part of it, according to rating agency JCR. On March 18, 2026, the company drew about 900 billion yen in a co-financing from the Japan Bank for International Cooperation (JBIC), MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank and Sumitomo Mitsui Trust Bank. Together with the subordinated loans and convertible bonds due 2029 and 2031, Nippon Steel said it had raised enough to repay the full bridge loan, completing its permanent financing. The golden share in use The government's veto was tested within three months. In September 2025 U.S. Steel planned to stop processing slabs at its Granite City Works in Illinois, a move that would have affected about 800 workers. Commerce Secretary Howard Lutnick told the company he would not allow it, and U.S. Steel reversed the plan on September 19, saying it had found a way to keep processing there. The White House said on September 22 that it had stepped in under the national security agreement. The full text of the agreement has not been published. Trump has described the arrangement as giving the U.S. majority control, while Nippon Steel has said the golden share involves no government investment and gives only veto rights. Investment so far In November 2025 U.S. Steel's CEO linked a $3 billion investment at the Big River Steel Works complex in Osceola, Arkansas, to Nippon Steel's ownership. In April 2026 U.S. Steel said it would spend $1.9 billion on a direct reduced iron plant at the same site, part of the $11 billion commitment. The plant is planned to employ about 200 full-time staff and up to 2,000 construction workers at peak, and in June 2026 Midrex was named to supply a 2.5 million metric ton per year unit. Nippon Steel's medium-term plan starting in fiscal 2026 sets total spending of about 6 trillion yen over five years, including the upgrades at U.S. Steel.
