Nippon Steel has **raised its U.S. investment pledge to 7billion∗∗—up from an initial 2.7 billion—to secure approval for its stalled $14.9 billion merger with U.S. Steel, according to a Semafor report citing sources close to negotiations. The revised offer aims to address U.S. government concerns by funneling funds into upgrading aging Rust Belt facilities while preserving jobs and U.S. Steel’s Pittsburgh headquarters.
Key Developments:
Political Negotiations: Nippon Steel executives met with White House officials to propose the enhanced investment package, aligning with Trump’s preference for a deal structured as an “investment” rather than a full acquisition.
Trump’s Stance: The former president signaled openness to a minority stake for Nippon Steel, softening his earlier opposition to foreign ownership of the iconic American firm.
Strategic Pledges: Nippon Steel vows to retain U.S. Steel’s union workforce and modernize infrastructure to bolster domestic production.
Context:
Nippon Steel, the world’s fourth-largest steelmaker, initially bid for U.S. Steel in December 2023, positioning the merger as critical to revitalizing the 122-year-old company. The deal has faced bipartisan pushback over national security and economic sovereignty concerns.
What’s Next?
Talks remain ongoing, with Nippon Steel President Tadashi Imai stating the companies will “continue negotiations to reach an agreement” with U.S. regulators.