Trump suggests Nippon Steel to invest in U.S. Steel instead of acquisition
President Donald Trump, during a news conference with Japanese Prime Minister Shigeru Ishiba, hinted that Nippon Steel might not proceed with its planned acquisition of U.S. Steel. Instead, the Japanese company could potentially invest in the American business.
Trump mistakenly referred to Nippon Steel as "Nissan," the Japanese automaker. However, it was Nippon Steel's bid that sparked controversy, as both Trump and his predecessor, Joe Biden, vowed to block the merger.
"Nippon Steel is going to be doing something very exciting about U.S. Steel," Trump stated at the news conference. "They'll be looking at an investment rather than a purchase."
While the details of the potential investment remain unclear, Trump indicated that he would meet with the head of Nippon Steel the following week and would be involved in "mediating and arbitrating" the deal.
Ishiba described the investment as mutually beneficial and mentioned that Japanese technology would be provided to U.S. Steel mills.
Nippon Steel's initial bid to acquire U.S. Steel in December 2023, valued at nearly $15 billion, became a political issue during the 2024 presidential election. The Pittsburgh-headquartered steelmaker held significant importance in the political swing state of Pennsylvania. Biden, along with the United Steelworkers labor union, sought to block the merger, while Trump, as a candidate, openly opposed the acquisition.
In December, the Committee on Foreign Investment in the United States (CFIUS) submitted its long-awaited report on national security concerns regarding the merger to Biden. However, the government panel failed to reach a consensus on whether national security issues existed. The Biden administration extended the deadline for Nippon Steel to abandon the deal, effectively leaving the decision in Trump's hands.