Nippon Steel's Bid for U.S. Steel Faces Uncertainty
Nippon Steel, Japan's largest steelmaker, declined to comment on Monday regarding U.S. President Donald Trump's statement that no one can have a majority stake in U.S. Steel, the target of Nippon's acquisition bid.
Trump made the comment on Sunday while speaking to reporters on Air Force One. He also announced plans to impose 25% tariffs on all steel and aluminum imports, in addition to existing duties.
Nippon Steel's shares fell more than 2% in early trading, compared to a 0.3% decline in the Nikkei index.
On Friday, Trump stated that Nippon Steel's $14.9 billion bid for U.S. Steel would take the form of an investment rather than a purchase. Sources familiar with the matter confirmed that Nippon Steel had not withdrawn its bid.
Nippon's pursuit of U.S. Steel has been ongoing for over a year, with Trump repeatedly condemning the proposal. However, his remarks on Friday, made alongside Japanese Prime Minister Shigeru Ishiba, were more tempered.
It remains unclear whether the "investment" referred to a new deal structure or the specific details of the transaction. Trump stated that he would meet with the head of Nippon Steel this week and would be involved in "mediating and arbitrating" the situation.
Upon returning from the U.S., Ishiba told broadcaster Nippon TV on Sunday that legal questions exist regarding the distinction between acquisition and investment, including the extent of stock ownership. He stated that these details would likely be discussed between Trump and Nippon Steel.
"The key point is whether Americans will feel that U.S. Steel will remain an American company," Ishiba said.
Nippon Steel declined to comment on Ishiba's remarks or any potential meeting with Trump.
Nippon Steel's bid for U.S. Steel is central to the company's global expansion plan. The acquisition was blocked last month by then-U.S. President Joe Biden due to national security concerns.
Nippon Steel, along with U.S. Steel, filed several lawsuits challenging Biden's decision.
Nippon Steel Vice Chairman Takahiro Mori stated last week that the company had no plans to change the acquisition structure.