Japanese steelmaker Nippon Steel has revealed a sweeping $11 billion investment plan aimed at securing regulatory approval for its contentious acquisition of U.S. Steel, according to Reuters reports citing internal documents and sources familiar with the matter.
The proposed investment includes up to $4 billion for the construction of a new steel mill and marks a sharp increase from Nippon Steel’s previous pledge of $2.7 billion. The total amount would be spent by 2028 to modernize and expand U.S. Steel’s infrastructure.
This bold move comes as the Committee on Foreign Investment in the United States (CFIUS) is set to complete its latest review of the takeover on May 21, following a directive from former President Donald Trump. Under federal law, Trump will then have 15 days to decide whether to approve or block the acquisition.
Nippon Steel announced its $14.9 billion bid for U.S. Steel in December 2023, but the deal has drawn strong political opposition, particularly from President Joe Biden, who voiced concern over foreign ownership of a key American manufacturer.
Biden's intervention after the first CFIUS review in early 2024 led to lawsuits from both companies, accusing the administration of politically motivated interference designed to appease the United Steelworkers (USW) union and influence the regulatory process unfairly.
The outcome of the current review may define the future of the U.S. steel industry, as well as set a precedent for foreign acquisitions of critical American infrastructure.
VietnamSteel by Hoa Sen Group
