ICYMI: Nippon Steel sweetens U.S. Steel bid with US$14bn investment pledge ...Middle East

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ICYMI: Nippon Steel sweetens U.S. Steel bid with US$14bn investment pledge

Nippon Steel plans to invest $14 billion in U.S. Steel, including $4 billion for a new mill, as part of a last-ditch effort to win U.S. approval for its takeover.

The proposed acquisition has drawn bipartisan opposition, with both President Biden and former President Trump arguing U.S. Steel should remain American-owned.

    A fresh national security review is set to conclude by May 21, after Biden blocked the deal earlier this year. Trump would then have 15 days to decide, though the timeline could shift.

    Nippon Steel initially pledged $1.4B in U.S. investments, later raised to $2.7B, and now up to $14B, including $11B through 2028 and $1B on a greenfield site—potentially expanding to $4B.

    A lawyer close to the matter said the boosted investment could help secure approval, citing its importance to national security and domestic steel production.

    Nippon faces a $565 million breakup fee if the deal collapses, and continues to grapple with 25% U.S. steel tariffs.

    While Nippon has gone to great lengths to win approval, it’s still uncertain whether the Trump administration will ultimately endorse the transaction.

    Info comes via Reuters report Monday US time.

    This article was written by Eamonn Sheridan at www.forexlive.com.

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