Core Viewpoint - The acquisition of U.S. Steel by Nippon Steel has been completed, but the future operational outlook is not optimistic due to significant financial burdens and uncertainties surrounding the investment [1][3]. Group 1: Acquisition Details - Nippon Steel officially acquired U.S. Steel for approximately $14.1 billion at a price of $55 per share [2]. - The initial investment plan of over $2 billion for upgrading U.S. Steel's outdated equipment has been increased to $11 billion, with all investments to be completed by the end of 2028 [2]. - Nippon Steel has committed to maintaining U.S. Steel's name, headquarters in Pittsburgh, and ensuring no factory closures or investment reductions [2]. Group 2: Strategic Rationale - The acquisition is driven by three key judgments: the shrinking domestic steel market in Japan, lack of competitiveness in emerging markets, and strong demand in the U.S. steel market with weak supply capabilities from U.S. steel companies [2]. Group 3: Financial Concerns - The financial outlook post-acquisition is concerning, with the total investment now exceeding $25 billion, raising uncertainties about the return on investment [3]. - Standard & Poor's has indicated that this acquisition could lead to a significant downgrade in Nippon Steel's credit rating due to the financial burden [3]. Group 4: Operational Challenges - The specifics of the national security agreement and the scope of the "golden share" that allows the U.S. government to veto important corporate decisions remain unclear, potentially hindering Nippon Steel's operational independence [3]. - The 50% tariffs on steel and aluminum imports in the U.S. could protect domestic manufacturers but may also lead to high inflation and reduced demand for steel due to suppressed construction investments and new car sales [3]. Group 5: Expert Opinions - Experts suggest that recovering investments in the U.S. market will be fraught with challenges for Nippon Steel moving forward [4].