Nippon Steel considers changing its plan for the US Steel deal

Trump says Nippon Steel's offer could take the form of an investment

Japanese steelmaker Nippon Steel is considering a bold change in its plan compared to its previous approach to buying US Steel. This was stated by Chief Cabinet Secretary Yoshimasa Hayashi, Reuters reports.

“We realize that Nippon Steel does not see this as a simple acquisition, but is weighing a bold proposal that is completely different from anything it has done in the past,” he explained.

According to Hayashi, this will create a win-win situation for both Japan and the US through significant investment and the production of high-quality products in demand in the US and global markets.

On February 7, US President Donald Trump said that Nippon Steel’s offer to buy US Steel would take the form of an investment, not a purchase, without taking a majority stake. He also said that he would meet with the head of the Japanese steel company. Sources familiar with the matter noted that Nippon has not withdrawn its offer.

Nippon declined to comment on Hayashi’s words, as well as Trump’s latest statement.

The market does not have much material to determine the prospects of this deal with US Steel, Bloomberg quoted Ryunosuke Shibata, an analyst at SBI Securities Co. According to him, a full takeover does not seem to be happening. As for the investment, there is no clarity on what it might look like.

Nippon Steel and US Steel first announced their intention to enter into a deal in December 2023, but faced political and regulatory obstacles in 2024.

As GMK Center reported earlier, in early January last year, Joe Biden blocked the acquisition for national security reasons. Subsequently, the companies filed lawsuits in a last-ditch effort to keep the merger alive. The Committee on Foreign Investment in the United States (CFIUS), in turn, approved an extension of the period during which Nippon Steel must abandon the takeover of US Steel until June 18 from February 2.