Nippon Steel's Unprecedented U.S. Acquisition Deal

Nippon Steel's $14.9 billion acquisition of U.S. Steel finalized on Wednesday, marking a significant move influenced by the Trump administration's power. The transaction involved Nippon purchasing all U.S. Steel shares at $55 each, with a national security agreement allowing the U.S. government unprecedented control.

The agreement grants the U.S. a golden share, providing veto authority over major corporate decisions such as plant closures and job relocations overseas. This unusual concession to government oversight was necessary to navigate the political challenges and secure the deal amidst opposition.

While the acquisition faced resistance from both major political parties during an election cycle, Trump's administration revived the deal with a new security review. However, the golden share's inclusion could deter future foreign investments, experts caution.

(With inputs from agencies.)