Editorial: What did the Nippon Steel-U.S. Steel deal really do?

The Nippon Steel-U.S. Steel deal is done.

Finally. Really.

What was proposed as a sale in December 2023 and talked about frequently as a “deal,” “merger,” “partnership” or “proposal” over the ensuing 18 months has cleared its hurdles and been approved by President Donald Trump.

Whatever it is, it involved a lot of money on Nippon Steel’s part.

The Japanese manufacturing giant is putting $14.9 billion into U.S. Steel for the acquisition. There is an $11 billion investment in the American company’s facilities over the next three years.

Aside from money, there are concessions, like keeping the headquarters in Pittsburgh. There’s a promise of $5,000 bonuses to U.S. Steel employees. Production levels are to be maintained. Americans will have positions on the board and in management.

And longstanding concerns that prompted a rare agreement between almost all Democratic and Republican politicians on the national security implications of the deal have been assuaged with a “golden share” for the U.S. government. There is a laundry list of actions Nippon cannot take without federal approval.

Apparently all of these hurdles and the resulting negotiated solutions are worth it to Nippon. The company stayed at the bargaining table. Not only was the original deal considerably more than the offer from Cleveland-Cliffs in 2023, but Nippon also kept putting more money on that table for more than a year. And that’s on top of a lot of other investment, like some slick advertising.

There is going to be a honeymoon period. There is relief that the vigil is over and that U.S. Steel’s longevity as a marquee American manufacturing company is preserved. Pittsburgh remains the Steel City.

“Keeping local jobs, honoring labor agreements, meeting all regulatory requirements and becoming a better community partner are all worthwhile outcomes of this deal,” said Allegheny County Executive Sara Innamorato.

But there will still be tests.

Trump’s steel tariffs remain an issue. Perhaps the deal will help U.S. Steel and Nippon navigate what could be uncertain waters for other countries and companies. Multiple theaters of military conflict are always a roller coaster ride for international trade.

And then there is the collective bargaining agreement with United Steelworkers International. That expires in September 2026. Union President David McCall, who opposed the sale, has vowed to “hold Nippon to its commitments.”

The deal may be done, but what happens next will be the real test of just what was really bought.