Nippon Steel plans to invest US$14 billion in US Steel’s operations including up to US$4 billion in a new steel mill if the Trump administration approves its bid for the iconic US company, according to a document and two people familiar with the matter.
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Under details of the plan included in the document, the company will plough US$11 billion into US Steel’s infrastructure until the end of 2028. That includes US$1 billion in a green field site, which is expected to grow by US$3 billion over the following years and has not been previously reported. The total investment figure was previously reported by finance website CTFN.
The supercharged investment pledge, up from an initial US$1.4 billion, was pitched as part of a last-ditch effort to win approval of the merger, which has drawn fire from both US Presidents Donald Trump and Joe Biden.
The companies face a May 21 deadline for the completion of a fresh national security review of their proposed tie-up, which was blocked by Biden on national security grounds in January following an earlier review. Trump would then have 15 days to decide the fate of the transaction, although the timeline could slip.
It is unclear if the billions in new investment will be enough to sway Trump, though two other sources said his administration sought the increased investment.
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But the offer shows the lengths Nippon Steel is willing to go to to secure approval, with a looming US$565 million break-up fee and current steep US steel tariffs of 25 per cent to access thriving American steel markets.