Clock Ticks for Nippon Steel as its $15 Billion U.S. Steel Acquisition Still Incomplete as Trump’s Return

Japan's largest steelmaker, Nippon Steel Corporation is determined to finalize its $15 billion acquisition of United States Steel Corporation (U.S. Steel) by the end of this year. This deal has already been in murky waters since its inception in December 2023 and has met with opposition from both U.S. Presidents Joe Biden and President-elect Donald Trump. The Japanese steel giant hopes to close the deal before Trump’s non-consecutive second term begins in January 2025.

Nippon Steel's Vice Chairman and Executive Vice President Takahiro Mori expressed confidence on November 7 that the deal could be concluded by the end of 2024. In a press conference in Tokyo, Mori stated, “We are now in a position to make measured discussions… Make no mistake, we can close this deal within the year,” referring to the ongoing review by the Committee on Foreign Investment in the United States (CFIUS). The acquisition is currently undergoing a security review, which is set to conclude by December 2024.

The proposed buyout would give Nippon Steel control over U.S. Steel, a historic American company. The deal is part of Nippon Steel's long-term strategy to boost its global steel production capacity from 65 million metric tons per year to 85 million metric tons. In the future, the company aims to surpass 100 million metric tons in production.

Nippon Steel sees the acquisition of U.S. Steel as essential to its growth, particularly as the U.S. market remains a key player in global demand for high-grade steel. Mori highlighted the strategic importance of the deal, saying, “The United States is essential to our continued growth as it is the world’s largest market for high-grade steel and a growing market with little China risk.”

However, the deal has faced stiff opposition from powerful labor unions, political figures, and government bodies in the past. Both President Biden and President-elect Trump have expressed concerns over the acquisition, with Trump vowing to block it if re-elected. U.S. Sen. William Hagerty, a close ally of Trump, urged Nippon Steel to clarify how the deal would benefit American workers and national security. While talking with a news agency CNN, Hagerty stated, “If Nippon Steel hopes to prevail in this effort to make this acquisition successful in the United States, they’re going to have to make their case in terms of the investments that will have positive job implications in the country."

Hagerty, who served as U.S. ambassador to Japan under Trump, emphasized that any deal involving a foreign company must demonstrate tangible benefits to U.S. employment and national security, adding that “It has nothing to do with the nationality of the company.”

Following this, Nippon Steel has made significant commitments to the United Steelworkers (USW) union. The company has promised to make substantial social guarantees, including job preservation and investment pledges, aimed at alleviating labor union concerns. Additionally, Nippon Steel has pledged to divest part of its stake in a U.S. steel plant joint venture if the acquisition is approved.

Despite the hurdles, Mori argued that the acquisition aligns with Trump’s “America First” policies, which encourage foreign investment and job creation in the U.S. “The previous Trump administration said it would attract foreign investment and create new jobs. This acquisition is extremely in line with such a policy,” Mori noted. To further bolster its case, Nippon Steel hired former U.S. Secretary of State Mike Pompeo, a key figure from the Trump administration, as an adviser to help lobby for the deal.

For now, the clock is ticking, and with Trump’s return to the White House drawing nearer, Nippon Steel remains hopeful that it can close the deal before the new administration takes office.