Nippon Steel is considering revising its acquisition of US Steel, following a meeting between Japanese Prime Minister Shigeru Ishiba and United States President Donald Trump.
The acquisition was blocked in January by U.S. regulators over national security concerns, with both companies challenging the ruling in an ongoing lawsuit. Trump said after speaking to Ishiba that Nippon Steel would instead invest in U.S. Steel, rather than purchasing the company.
Nippon Steel will “be looking at an investment rather than a purchase," said Trump. “They've agreed to invest heavily in U.S. Steel as opposed to own it, and that sounds very exciting.”
Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said Nippon Steel was reassessing elements of its bid. “We are aware that Nippon Steel is not looking at this as a mere acquisition, but is considering a bold proposal that is completely different from anything it has done in the past.”
Nippon Steel has not withdrawn its bid, according to Reuters. Its CEO, Eiji Hashimoto, plans to meet with Trump this week.
Trump also announced a blanket 25% tariff on all steel and aluminium imports today, which the White House said would take effect on 4 March.
Around 1.18 million tons of the U.S.’ imported steel came from Japan in 2024, making it the U.S.’ sixth-largest source of steel.
Ishiba declined to answer questions about whether he would consider retaliatory measures to U.S. tariffs after his meeting with Trump.
Nippon Steel’s share price (TYO: 5401) closed at JP¥3,340, down from its previous close at ¥3,358. Its market capitalisation is ¥3.49 trillion.
