Nippon Steel considers investing up to $7 billion in US Steel if deal is approved

Japanese steelmaker Nippon Steel may invest about $7 billion in US Steel if the US government approves the purchase, Reuters reports.

According to the Semafor portal, the potential liabilities are significantly higher than the $2.7 billion previously reported. to restore the US steelmaker’s obsolete assets.

Nippon Steel President Tadashi Imai said earlier this week that the companies would continue negotiations with the US government to reach an agreement on the terms of the share purchase and future investment plans. In his opinion, the parties are coming to an understanding that the acquisition of US Steel will help strengthen the American steel industry and manufacturing through investments, including equity participation.

As a reminder, Nippon Steel announced the acquisition of a US competitor for $14.1 billion in December 2023. The deal was blocked in January 2024 for national security reasons by Joe Biden, who was then President of the United States. The companies filed a lawsuit to challenge the merger ban, and the deal is currently being reviewed by the US Department of Justice.

On February 7, US President Donald Trump said that the Japanese steelmaker’s offer to buy US Steel would be in the form of an investment, not a purchase, without taking a majority stake.

As GMK Center reported earlier, US Steel, one of the largest steel producers in the US, reduced steel shipments by 8.4% in 2024 compared to 2023 – to 14.2 million short tons.