Nippon Steel, Japan’s largest steelmaker, is moving forward with its plan to acquire U.S. Steel, asserting that this acquisition supports the U.S. administration’s priorities by boosting domestic investment, creating jobs, and transferring advanced technology. The company’s merger bid, which was initially halted by former President Biden over national security issues, is now being contested through several lawsuits filed by Nippon Steel and U.S. Steel.
The acquisition has taken on significant political overtones, with both leading candidates—Biden and Trump—making their positions known ahead of the U.S. presidential election. In Pennsylvania, where U.S. Steel is headquartered, the political debate has been particularly intense as both parties vie for support from voters in a crucial swing state. Nippon Steel believes that a forthcoming meeting between U.S. President Trump and Japan’s Prime Minister Ishiba could sway opinions and potentially reopen opportunities for the deal.
Looking ahead, Nippon Steel envisions this merger as a crucial step in its broader strategy to enhance its global steel output capacity, aiming to exceed 100 million metric tons in the long term. The company also intends to expand its presence not only in the U.S. but in emerging markets such as India and Southeast Asia, where steel demand is expected to rise and local tariff protections against Chinese imports are in place.
In addition, Nippon Steel reported an 18% decline in its net profit for the period spanning April to December, which it attributed to weak steel demand both domestically and internationally, as well as competitive pressures from increased exports from China. As part of its broader corporate restructuring, Nippon Steel has also announced plans to sell its stake in Kobe Steel, with Kobe Steel expected to reciprocate by liquidating its shares held in Nippon Steel.