Rumor has it that Nippon Steel plans to invest 14 billion US dollars in American Steel (X.US) if the Trump administration approves the deal

The Zhitong Finance App learned that Nippon Steel plans to invest up to 14 billion US dollars in American Steel (X.US) on the premise of obtaining approval from the Trump administration for the acquisition, including investing 4 billion US dollars to build a new steel mill in the US.

The investment plan is part of Nippon Steel's merger and acquisition of American Steel, and the deal is currently in a critical review stage. According to reports, the US government will complete the latest round of national security review of this merger and acquisition case this Wednesday. The deal was put on hold during the final phase of Biden's presidency due to national security issues.

As the fourth largest steel producer in the world, Nippon Steel announced as early as the end of 2023 that it plans to acquire American Steel at a price of about 15 billion US dollars, which attracted strong attention from the US political community and trade unions. This time, an additional investment of 14 billion US dollars was promised to calm regulators and politicians concerned about employment, local manufacturing, etc.

People familiar with the matter revealed that the $4 billion in this plan will be used to build an advanced steel production plant in the US, which may drive the local economy and create a large number of jobs, thereby enhancing the viability of the deal in the current political environment.

As of press release, US Steel rose more than 1.5% to $40.97.