Japanese steel company Nippon Steel plans to invest $14 billion in US Steel if the administration of US President Donald Trump approves a deal to acquire the latter. This is reported by Reuters, citing sources and a relevant document.
According to the details outlined in the document, Nippon Steel will invest $11 billion in US Steel infrastructure by 2028. The amount includes $1 billion for a new production site. Investments in the latter are expected to grow by another $3 billion in recent years.
The new investment promise, well in excess of the initial $1.4 billion, was proposed as part of a last-ditch effort to get the deal approved.
A new review of the agreement with a national security position should be completed by May 21. In April, Trump instructed the Committee on Foreign Investment in the United States (CFIUS) to study the transaction by that date. After that, the President of the United States will have 15 days to decide the fate of the slug, although the deadline may be postponed.
The parties declined to comment or did not respond to the agency's requests.
The renewed promise should be enough to encourage the Trump administration to approve the deal, according to Nick Klein, a lawyer at DLA Piper.
Recall that in December 2023, Nippon Steel offered $14.9 billion for US Steel. However, this presented significant difficulties, as both then-President Biden and Donald Trump argued that US Steel should remain American-owned.
In August 2024, Nippon Steel increased its investment obligations to the American company to $2.7 billion, and also promised to maintain the headquarters of US Steel in Pennsylvania.
In January of this year, US President Joe Biden blocked consent for national security reasons, which led to lawsuits from companies. In February, his successor, Trump, said he was open to strategic investments by Nippon, but not the purchase of US Steel.
