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yesterday

Nippon Steel Pledges $14 Billion Investment to Secure U.S. Steel Deal

Ahead of a May 21 national security review deadline, Nippon Steel has unveiled a $14 billion investment plan, including a new steel mill, to address U.S. concerns over its proposed $14.9 billion acquisition of U.S. Steel.

A drone view shows Gary Works, the largest integrated steel mill in the U.S., which is operated by U.S. Steel, in Gary, Indiana, U.S., December 12, 2024. REUTERS/Vincent Alban/File Photo
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A sign is posted at the entrance of United States Steel’s Gary Works facility on June 20, 2019, in Gary, Indiana. (Scott Olson/Getty Images/TNS)
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Overview

  • Nippon Steel has committed $14 billion in investments, including $11 billion for infrastructure upgrades through 2028 and up to $4 billion for a new steel mill, to secure U.S. government approval for its acquisition of U.S. Steel.
  • A fresh national security review under the Trump administration is set to conclude on May 21, with President Trump facing a 15-day window to decide the deal's fate.
  • Both Presidents Biden and Trump have expressed concerns over foreign ownership of U.S. Steel, citing national security and the company's strategic importance in Pennsylvania.
  • Nippon Steel has repeatedly increased its investment pledges, from $1.4 billion in 2023 to $2.7 billion in 2024, and now to $14 billion, including guarantees to protect jobs and maintain U.S. Steel's Pennsylvania headquarters.
  • The deal remains uncertain despite Nippon Steel's expanded commitments, as political and regulatory scrutiny continues to weigh heavily on the proposed merger.