Nippon Steel plans to invest USD 14 bln in U.S. Steel’s operations, including up to USD 4 bln for a new steel mill, if the Trump administration approves its acquisition bid, according to sources, Reuters reported.
The offer includes USD 11 bln for infrastructure through 2028, with USD 1 bln for a greenfield site growing to USD 4 bln. This increased pledge aims to overcome political resistance from both Presidents Biden and Trump, who oppose foreign ownership of the Pennsylvania-based steelmaker.
The deal faces a May 21 national security review deadline. Biden blocked the merger in January, citing security concerns, but the Trump administration has reopened the review. Nippon Steel’s USD 14.9 bln bid, made in December 2023, targets growing U.S. steel demand tied to infrastructure spending.
Despite commitments to keep U.S. Steel’s headquarters in Pennsylvania and increased investments, the deal’s future remains uncertain amid political hurdles and investor caution.