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 acquisition target U.S. Steel. This follows Trump's announcement on Sunday that the U.S. will impose 25% tariffs on all steel and aluminum imports, on top of existing duties.
Nippon Steel's pursuit of U.S. Steel has been ongoing for over a year, with Trump repeatedly condemning the proposal. However, his remarks on Friday were more tempered, as he met with Japanese Prime Minister Shigeru Ishiba at the Oval Office.
It remains unclear whether the "investment" Trump referred to signifies a new deal structure or what the transaction details might be. Trump stated that he would meet with the head of Nippon Steel this week and be involved in "mediating and arbitrating" the situation.
Ishiba, upon returning from the U.S., highlighted legal questions surrounding the distinction between acquisition and investment, particularly regarding the extent of stock ownership. He indicated 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 emphasized.
Nippon Steel declined to comment on Ishiba's remarks or any potential management meeting with Trump.
Nippon Steel's bid for U.S. Steel is crucial to the Japanese company's global expansion plan. It was blocked last month by then-U.S. President Joe Biden due to national security concerns. Both companies filed lawsuits challenging Biden's decision.
Nippon Steel Vice Chairman Takahiro Mori recently stated that the company has no plans to alter the acquisition structure. However, with Trump's latest pronouncements and the ongoing legal challenges, the future of the deal remains uncertain.