The Scoop
Nippon Steel and US Steel are in talks with the Trump administration to salvage their $14 billion merger by offering billions more in investments from the Japanese steelmaker into outdated Rust Belt facilities, according to people familiar with the matter.
In recent meetings with White House officials, Nippon has offered to dramatically increase the $2.7 billion it had previously offered to upgrade US Steel factories, the people said, with some saying it could be as much as $7 billion. Trump had initially opposed any sale of US Steel but at a press conference in February said he was open to Nippon making a strategic investment.
Under the new scenario, Nippon would maintain its $55 per share agreement to acquire the company, and would make sizable capital investments as soon as possible, the people said.
The US government’s opposition has been a test of how far the White House is willing to go to block a deal supported by an allied country. Nippon’s shareholder-approved offer for US Steel was blocked by the Biden administration on national security grounds — prompting litigation from both steelmakers, which is still moving through the courts.
Amid strong opposition from the US Steel union, Trump has publicly stated that he does not believe the Japanese steelmaker should be able to acquire the company.
Nonetheless, Nippon has continued to actively engage with Trump administration officials, including Commerce Secretary Howard Lutnick and White House staffers.
Nippon and US Steel did not immediately return a request for comment.
Know More
The potentially recut deal comes as US Steel contends with an activist investor that has also been pitching alternative plans and investment structures to administration officials. Activist investor Ancora, which manages roughly $10 billion, has recently had meetings with both Lutnick and staffers in Vice President JD Vance’s office, according to people familiar with the matter, and has been publicly pushing for US Steel to offer more clarity about whether the deal would close.