Nippon Steel plans to invest $14 billion in U.S. Steel, including up to $4 billion to build a new steel mill, if the Trump administration approves its takeover bid, according to a document and sources familiar with the matter.
The investment will cover $11 billion to upgrade U.S. Steel’s existing facilities through 2028. This includes $1 billion for a new greenfield site, which could grow to $4 billion over time. This new investment amount is higher than previously reported figures.
U.S. Steel’s shares rose more than 3% after news of the increased investment surfaced. The original investment pledge was $1.4 billion but has now been raised significantly in an effort to gain approval for the merger. The deal has faced opposition from both Presidents Biden and Trump, who have expressed concerns about foreign ownership of the iconic American steel company.
The companies face a May 21 deadline for a fresh national security review of the merger. After that, Trump has 15 days to decide whether to approve the deal, though the timeline could be extended. It remains unclear if the larger investment will be enough to sway Trump, but sources say his administration requested the increased commitment.
Legal experts believe the new investment could convince the Trump administration to approve the merger. Nick Klein, a lawyer at DLA Piper, said that expanding steel production in the U.S. is crucial for national security, and the administration may see this deal favorably.
Nippon Steel’s willingness to invest billions highlights its determination to secure approval despite a looming $565 million breakup fee and existing 25% U.S. steel tariffs. The company also promises to keep U.S. Steel’s headquarters in Pennsylvania and maintain agreements with the United Steelworkers union.
Nippon Steel has sought a meeting with U.S. Treasury Secretary Scott Bessent to clarify President Trump’s position on the deal. The company insists that full ownership is necessary to share technology and improve U.S. Steel, rather than a joint venture.
The proposed acquisition, first announced in December 2023 for $14.9 billion, aims to capitalize on increased steel demand driven by U.S. infrastructure spending. However, the deal has faced regulatory hurdles and political opposition, with Biden blocking the merger in January on national security grounds. Nippon Steel and U.S. Steel have challenged that decision in court.
Despite the uncertainty, Nippon Steel remains committed to completing the acquisition and continuing its investment in U.S. Steel’s growth and modernization.
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