Even before the political complications that have hampered Nippon Steel’s U.S. gambit, the offer price looked steep. At $55 a share, Nippon Steel will pay a 142% premium to the level U.S. Steel was trading at before it effectively put itself up for sale in 2023.

Nippon Steel’s $14 billion US Steel deal raises investor concerns over financing, control via golden share, and high acquisition premium.

The partnership between US Steel Corp and Nippon Steel Corp has reached a new phase, with an agreement on US national security guarantees, in addition to the so-called “golden share” advantage obtained by US President Donald Trump’s administration.

There are reports that Nippon will spend billions of dollars on U.S. Steel facilities in Pennsylvania, Alabama, Arkansas, Minnesota and Indiana.

Gary Mayor Eddie Melton said Nippon Steel​ plans to pump $1 billion in the Gary Works U.S. Steel facility — the largest steel plant in the country.

There are reports that Nippon will spend billions of dollars on U.S. Steel facilities in Pennsylvania, Alabama, Arkansas, Minnesota and Indiana.