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| Nippon Steel |
Trump Suggests Investment Over Full Acquisition
Nippon Steel is reassessing its strategy for acquiring US Steel, potentially shifting from a full takeover to an investment-based approach. This reconsideration was confirmed by Chief Cabinet Secretary Yoshimasa Hayashi, as reported by Reuters.
“We realize that Nippon Steel does not see this as a simple acquisition, but is weighing a bold proposal that is completely different from anything it has done in the past,” Hayashi stated. He emphasized that such an approach could create a win-win scenario for both Japan and the US, leading to substantial investment and high-quality steel production.
Trump's Statement and Market Uncertainty
On February 7, former US President Donald Trump remarked that Nippon Steel’s proposal may take the form of an investment rather than a majority takeover. Trump also mentioned plans to meet with Nippon Steel’s leadership. Despite these remarks, sources confirm that Nippon Steel has not withdrawn its initial offer.
Market analysts remain uncertain about the deal’s prospects. Bloomberg cited Ryunosuke Shibata, an analyst at SBI Securities Co., who noted that a full acquisition seems unlikely but the specifics of the investment structure remain unclear.
Political and Regulatory Challenges
The Nippon Steel–US Steel deal was first announced in December 2023 but faced strong political opposition in 2024. In January 2024, President Joe Biden blocked the acquisition on national security grounds. Following this, Nippon Steel and US Steel filed lawsuits to challenge the decision.
The Committee on Foreign Investment in the United States (CFIUS) extended Nippon Steel’s deadline to abandon the takeover from February 2 to June 18. With these regulatory hurdles in place, Nippon Steel’s shift towards an investment-based model could be an attempt to navigate the ongoing scrutiny.
