Nippon Steel Doubles Down on $14.1-B US Steel Pursuit
Nippon Steel remains resolute in its aim to acquire US Steel (NYSE: X) despite encountering political resistance and shifting statements from the White House.
Nippon Steel President Tadashi Imai, speaking in Tokyo, addressed President Donald Trump’s recent suggestion that Nippon Steel might opt to invest in US Steel instead.
“The starting point for our discussions with the US government will be this merger agreement,” he said. “From there, we will discuss with the US administration on how we can get President Trump to approve of the deal.”
The $14.1 billion takeover attempt was blocked by former President Joe Biden in early January, citing national security concerns. Trump has echoed similar reservations.
Nippon Steel spent much of 2024 navigating regulatory reviews and lobbying efforts to secure a green light for its planned acquisition. A prior assessment by the Committee on Foreign Investment in the United States raised significant reservations, including worries that the Japanese company’s global operations might conflict with US interests.
Nippon Steel rejected those claims as “littered with factual inaccuracies and omissions,” and indicated it might pursue legal measures if its bid was permanently blocked. However, Biden’s presidential order effectively stopped the takeover on the eve of his departure from the White House.
Further complicating matters, Trump is preparing to impose tariffs of up to 25% on steel imports from Canada and Mexico by early February. As a result, some suppliers in those countries have paused new sales into the US.
Manufacturing buyers, including Arizona-based Flack Global Metals, report that Mexican companies have altered their approach to U.S. customers due to the renewed tariff threat. Canada, the single largest source of steel imports for the United States, also faces heightened uncertainty, with potential consequences for North American supply chains and steel prices.
Japanese Trade Minister Yoji Muto is expected to visit the US in March, and reports indicate that the proposed US Steel takeover may well be on his agenda.
Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
