Topline
President Donald Trump on Friday said Japan’s Nippon Steel agreed to drop its nearly $15 billion bid to acquire U.S. Steel and will “heavily” invest in the company instead, ending a yearlong deal to merge the two companies after bipartisan opposition.
President Joe Biden previously blocked the deal, prompting a lawsuit from both companies.
Key Facts
Trump, who spoke at a press conference with Japanese Prime Minister Shigeru Ishiba, said Nippon has agreed to “invest heavily in U.S. Steel as opposed to own it.”
Details of the investment are not immediately clear, though Trump said he would meet with Nippon executives next week to “mediate and arbitrate.”
At least one Pennsylvania official applauded the deal: State Senate President Pro Tempore Kim Ward, a Republican, said the deal is a “positive development” and “good news” for steelworkers in southwestern Pennsylvania, where U.S. Steel is headquartered.
Nippon did not immediately respond to a request for comment.
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Crucial Quote
“[Nippon will] be looking at an investment rather than a purchase,” Trump said, adding U.S. Steel is a “very important company” for the U.S.: “We didn’t want to see that leave.”
Key Background
Nippon announced a $14.9 billion deal to buy U.S. Steel in December 2023, suggesting the newly formed company would maintain its original name and Pittsburgh headquarters. The deal quickly drew opposition from top Republicans and Democrats, including then-President Joe Biden, who said it was “important” that U.S. Steel—founded in 1901 by industrialists Andrew Carnegie, J.P. Morgan and Charles Schwab—remain a U.S.-based company. U.S. Steel, however, warned the company would be forced to move its company headquarters away from Pittsburgh and “thousands” of union jobs would be at risk without the Nippon takeover. Trump vowed to end the deal during his latest presidential campaign, suggesting in December 2024 he would rely on “tax incentives” and tariffs to bolster U.S. Steel’s finances. Biden blocked the merger in January, saying U.S. Steel would “remain a proud American company.” Nippon and U.S. Steel subsequently sued the Biden administration to challenge his decision, alleging Biden had violated their “constitutional due process and statutory rights.”
Why Did Nippon Offer To Buy U.s. Steel?
In its initial announcement, Nippon argued its deal to acquire U.S. Steel would help the weakened American steel industry to compete with China. The company later said it would invest billions in steelworking facilities in Pennsylvania and Indiana that would “enhance the security of steel supply to American manufacturers.”
Surprising Fact
The Committee on Foreign Investment in the U.S. failed to make a consensus recommendation on Nippon’s takeover in December 2024, giving Biden roughly two weeks to decide whether to approve the deal. Regulators questioned the finances of the deal after U.S. Steel’s stock dropped after reports suggested the fate of the merger was in question.
