Nippon Steel is pressing forward with its $15 billion acquisition of U.S. Steel (X), despite vocal opposition from President-elect Donald Trump and the United Steelworkers (USW). Nippon Steel Vice Chairman Takahiro Mori, fresh from discussions in Pittsburgh, emphasized the strategic importance of the deal to the company’s global ambitions. With this acquisition, Nippon Steel aims to increase its steel production capacity from 65 million to 85 million metric tons annually, a significant step toward its long-term goal of surpassing 100 million tons.
The deal has cleared regulatory hurdles outside the U.S. and is now under review by the Committee on Foreign Investment in the United States (CFIUS) and the Department of Justice for antitrust approval. Mori expressed near-certainty that the transaction would close by the year-end but acknowledged the risks posed by U.S. political resistance. Both Trump and President Joe Biden have voiced concerns about keeping U.S. Steel under American ownership. To address these concerns, Nippon Steel has committed to retaining U.S. Steel’s production capacity and workforce in the United States.
Market Overview:- Nippon Steel aims to finalize its $15 billion acquisition of U.S. Steel by December.
- The deal has faced opposition from Trump, Biden, and the United Steelworkers union.
- Approval is pending from CFIUS and the U.S. Department of Justice.
- Nippon Steel seeks to expand its global production capacity to 85 million tons annually.
- Japan’s government strongly supports the acquisition, with Prime Minister Ishiba lobbying for approval.
- Nippon Steel is prepared to take legal action if U.S. authorities block the deal.
- CFIUS is expected to deliver its decision this month, with potential provisions for national security.
- Further financing options, including hybrid instruments, are being considered for the acquisition.
- The deal’s resolution will test U.S.-Japan trade relations under a new administration.
Mori emphasized Nippon Steel’s strong commitment to the acquisition, stating that U.S. Steel is pivotal to its global strategy. He noted growing support from local U.S. stakeholders and highlighted the Japanese government’s significant backing, including direct appeals to the Biden administration. While concerns from U.S. political leaders linger, Nippon Steel has pledged not to relocate U.S. Steel’s production or jobs abroad.
The final decision from U.S. regulators will determine whether Nippon Steel can complete the acquisition as planned. The outcome could serve as a bellwether for future foreign investments in U.S. critical industries under heightened scrutiny. Nippon Steel has indicated that all options remain on the table, including legal action, should approval be denied, reflecting its determination to see the deal through.
