Japanese steelmaker Nippon Steel has unveiled a new investment plan for US Steel, including a new steel mill, in order to secure approval for its planned acquisition of the latter, according to Reuters, citing a document and three people close to the matter.
Within the scope of the plan, the company will spend $11 billion on US Steel’s infrastructure by 2028, including up to $4 billion for the construction of a new steel mill. Previously, Nippon Steel pledged to invest at least $2.7 billion in the steelmaker.
In the meantime, the new review of the takeover bid conducted by the Committee on Foreign Investment in the United States (CFIUS) upon the order of US President Donald Trump is expected to be completed tomorrow, May 21. Trump then will have 15 days to approve or end the deal.
In December 2023, Nippon Steel had announced its intention to acquire US Steel for $14.9 billion, though the deal faced a backlash from former US President Joe Biden. Biden’s move to block the deal after the first CFIUS review led to two lawsuits being launched by the companies in January this year, accusing the former president ignoring the rule of law to please the United Steelworkers (USW) union and to support his political agenda, and of influencing CFIUS to advance his political agenda, which resulted in a biased process depriving Nippon Steel and US Steel of their rightful opportunity for fair consideration.