Trump approves Nippon Steel's $14.9 billion purchase of US Steel

US President Donald Trump approved Nippon Steel's $14.9 billion bid for US Steel, capping a tumultuous 18-month effort by the companies that survived union opposition and two national security reviews.

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Trump signed an executive order saying the tie-up could move forward if the companies sign an agreement with the Treasury Department resolving national security concerns posed by the deal.

The companies then announced they had signed the agreement, fulfilling the conditions of Trump's directive and effectively garnering approval for the merger.

"We look forward to putting our commitments into action to make American steelmaking and manufacturing great again," the companies said in the statement, thanking Trump.

They added the agreement includes $11 billion in new investments to be made by 2028 as well as governance, production and trade commitments.

Nippon Steel will buy a 100 per cent stake in US Steel, a spokesperson for the Japanese company in Tokyo said on Saturday.

The steelmakers provided no detail on the “golden share” they pledged to issue to the US government, raising questions about the extent of US control.

"US Senator David McCormick of Pennsylvania, where US Steel is headquartered, said last month the golden share would give the government veto power over key decisions relating to the American steel icon.

Reuters has reported that Nippon Steel would invest an additional $3 billion for a new mill after 2028.