Nippon Steel ready to invest $14 billion in US Steel if deal approved – Reuters

Japanese steel company Nippon Steel plans to invest $14 billion in US Steel if the administration of US President Donald Trump approves the acquisition of the latter. Reuters reports this with reference to sources and the relevant document.

According to the details set out in the document, Nippon Steel will invest $11 billion in US Steel’s infrastructure by 2028. The amount includes $1 billion in a new production site. In the following years, investments in the latter are expected to increase by another $3 billion.

The new investment pledge, which is significantly higher than the original $1.4 billion, was offered as part of a last-ditch effort to secure approval of the deal.

A new national security review of the deal is due by May 21 – in April, Trump instructed the Committee on Foreign Investment in the United States (CFIUS) to review the transaction by that date. After that, the US president will have 15 days to decide the fate of the merger, although the deadline may be extended.

The parties declined to comment or did not respond to the agency’s inquiries.

The renewed promise should be enough to encourage the Trump administration to approve the merger, said Nick Klein, a lawyer at DLA Piper.

In December 2023, Nippon Steel offered $14.9 billion for US Steel. However, this merger faced difficulties from the start, as both then-President Biden and Donald Trump argued that US Steel should remain in American ownership.

In August 2024, Nippon Steel increased its investment commitments to the American company to $2.7 billion and promised to keep US Steel’s headquarters in Pennsylvania.

In January of this year, then US President Joe Biden blocked the deal on national security grounds, which led to lawsuits from companies. In February, his successor, Trump, said he was open to strategic investments by Nippon, but not to the purchase of US Steel.

As GMK Center reported earlier, US Steel reduced steel shipments by 1.1% year-on-year – to 3.76 million short tons in the first quarter of 2025. In January-March, the European segment decreased by 20.1% y/y – to 856 thousand short tons.