White House comments signal potential US Steel-Nippon Steel reboot

Remarks late last week by President Donald Trump indicate Japanese company Nippon Steel might have crafted a proposal regarding its intended purchase of United States Steel Corp. that could gain it federal approval of the transaction.

At a Friday news conference featuring Trump and Japanese Prime Minister Shigeru Ishiba, the two officials characterized the acquisition as instead an “investment” by Nippon into U.S. Steel.

Nippon Steel’s planned acquisition of Pittsburgh-based U.S. Steel has been approved by shareholders of both companies and regulators in nations other than the U.S. However, it was denied approval by former President Joe Biden and Trump previously expressed opposition in campaign appearances.

Last Friday, however, Trump reportedly said of Nippon Steel, “They’ll be looking at an investment rather than a purchase; they’ve agreed to invest heavily in U.S. Steel as opposed to own it.”

Ishiba seemed to confirm that viewpoint, saying of the transaction, “It is not one-sided. It will be reciprocal, it will be mutually beneficial,” according to a CNBC report.

Follow-up reports by news outlets including Reuters and The Japan Times refer to considerable revisions as part of a reboot of Nippon’s proposal but also indicate details have not been disclosed.

Reuters quotes Ishiba’s Chief Cabinet Secretary Yoshimasa Hayashi as saying, "We are aware that Nippon Steel is not looking at this as a mere acquisition but is considering a bold proposal that is completely different from anything it has done in the past.”

Despite the obstacles and objections Nippon Steel has encountered from U.S. politicians and the leadership of the United Steelworkers (USW), the company has not given up on its pursuit of U.S. Steel assets.

On its website, Nippon Steel says in Pennsylvania alone it intends to create a $1 billion “economic impact” at the Mon Valley blast furnace/basic oxygen furnace (BOF) complex near Pittsburgh.

Sponsored Content

Shredding tough materials with a small footprint

Discover how SSI’s innovative M120 EX Dual-Shear® shredder is revolutionizing recycling with its unique stacked chamber design and SmartFeed® technology—delivering powerful, space-efficient, and adaptive shredding for hard-to-process materials like plastics, metals, and fishing nets. Watch the video and read the full article to see this next-generation shredder in real-world operations.

The company’s pledge to invest in and upgrade BOF complexes in Pennsylvania and Indiana has attracted supporters of the transaction in each of those states.