Several months ago, I published a defense of Nippon Steel’s proposed acquisition of U.S. Steel when it was still under review by the Committee on Foreign Investment in the U.S. (CFIUS) late in former President Joe Biden’s term. Since then, CFIUS rendered its decision – it could not reach a consensus regarding any national security threats surrounding the deal – which punted the decision to Biden. He nixed the merger just before Donald Trump returned to the presidency and the jilted lovers fought back. Now the matter is in federal court.
Today President Trump has the ball and like a cagey quarterback running the triple option, he could run in several directions with Nippon Steel-U.S. Steel. While he was similarly opposed to the deal on the campaign trail, on Feb. 7 Japanese Prime Minister Shigeru Ishiba visited the White House to make the case for this merger among other asks of the new president. Trump and Ishiba announced that Nippon Steel now will only invest in U.S. Steel rather than acquire it. Trump said:
“They’re doing it as an investment, no longer a purchase … I didn’t want it purchased, but investment I love.”
Of course, no details were given as to how such a deal would work and if it would be worth it for Nippon.
What would Nippon Steel get from just investing in U.S. Steel? Under its initial merger proposal, Nippon had promised 5,000 construction jobs and $40 million in state and local taxes to its friends in Pennsylvania, which, is a swing state that Republicans will probably need to win the 2028 presidential election. […]
— Read More: issuesinsights.com
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