US President Donald Trump indicated Nippon Steel Corp. is considering investing in United States Steel Corp. instead of an outright purchase, offering a potential resolution to a clash over the Japanese firm’s contentious bid to buy the iconic American company.
His comments add to investor concern that the merger agreement is effectively over, disappointing those US Steel investors who had hoped Trump would have a change of heart and attempt to reverse his predecessor’s January decision to block the deal. While the two companies are litigating that decision in court, it’s widely believed that the cases won’t save the deal.
“They’ve agreed to invest heavily in US Steel as opposed to own it, and that sounds very exciting,” Trump said Friday at a joint press conference with Japanese Prime Minister Shigeru Ishiba.
Shares of US Steel closed 5.8% lower at $36.98 in New York, far below the $55-per-share offer from Nippon Steel that both companies had agreed. Representatives of US Steel and Nippon Steel weren’t immediately available for comment.
Nippon Steel’s $14.1 billion offer for US Steel became a political flash point during the 2024 US presidential election and strained ties between the US and Japan, two normally stalwart allies.
Proponents of the transaction argue that selling US Steel to a company located in Japan, a US ally, would help bring investment to the American firm’s aging mills, support a rebirth of the domestic steel sector and create a powerhouse with the scale to compete with Chinese rivals.
Critics say it would weaken union protections for steelworkers, potentially open the US to a flood of foreign-made steel and weaken the efficacy of trade actions to bolster the rest of the industry.
Trump was vocal about his opposition to a foreign takeover of US Steel during the election campaign, saying he disliked the idea of selling an iconic American firm headquartered in a politically important state to a foreign buyer. Vice President JD Vance also opposed the proposed deal, in which Nippon Steel outbid Cleveland-Cliffs Inc., based in Ohio, the state he represented in the US Senate.
Since taking office, Trump has been more muted on the subject, leading some of its proponents to see a path forward. But the president has also talked up plans to impose tariffs that he says would support the domestic steel industry, although he hasn’t said when — or at what rate — those levies would be imposed.
“US Steel is a very important company to us, the greatest company in the world for 15 years, many years ago, 80 years ago,” Trump said Friday. “We didn’t want to see that leave, and it wouldn’t actually leave, but the concept psychologically not good.”
During the press conference, Trump repeatedly referred to “Nissan.” Trump was in fact referring to Nippon Steel, rather than automaker Nissan Motor Co. Ltd., a person familiar with the president’s thinking confirmed.
Trump met Thursday with US Steel Chief Executive Officer Dave Burritt, who has warned that blocking the sale would imperil thousands of jobs and raise questions about whether the company’s head office could remain in Pittsburgh, a city with deep historical links to the steel industry.
Cleveland-Cliffs has signaled it’s still interested in US Steel should Nippon Steel formally end its takeover bid.
. Read more on World by NDTV Profit.Nippon Steel’s $14.1 billion offer for US Steel became a political flash point during the 2024 US presidential election and strained ties between the US and Japan. Read MoreWorld
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