In a surprising turn of events, former U.S. President Donald Trump stated on Friday that Nippon Steel’s $14.9 billion bid for U.S. Steel would take the form of an investment rather than a purchase. However, two sources familiar with the matter indicated that the Japanese steel giant had not withdrawn its acquisition offer, causing further uncertainty about the deal’s future.
Speaking at the Oval Office alongside Japanese Prime Minister Shigeru Ishiba, Trump described the situation as an investment rather than a takeover, despite his longstanding opposition to the acquisition. “They’ll be looking at an investment rather than a purchase,” Trump stated, adding that he would personally meet with Nippon Steel’s leadership next week to “mediate and arbitrate.”
Unclear Deal Structure Raises Questions
Neither U.S. Steel nor Nippon Steel provided immediate comments on Trump’s statements. It remains uncertain whether an alternative deal structure is being explored or if the president misspoke regarding the nature of the transaction. Adding to the confusion, Trump mistakenly referred to Nippon Steel as “Nissan,” the Japanese automaker, during his remarks, according to a White House official.
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Nippon Steel’s pursuit of U.S. Steel has faced significant hurdles, including political resistance from both major U.S. presidential candidates. Both President Joe Biden and Trump have pledged to block the deal, citing concerns over foreign ownership of a company once deemed vital to American industry.
Stock Market Reaction and Union Response
Following Trump’s remarks, U.S. Steel shares experienced a turbulent trading session, initially surging on a CBS report suggesting Trump might approve the deal, only to drop nearly 6% by the end of the day after he reaffirmed his opposition.
United Steelworkers President David McCall reinforced the union’s position against the acquisition, stating that there has been no communication from either company or the U.S. government about the suggested investment. “Our concerns regarding Nippon’s continued interest in U.S. Steel remain unchanged,” McCall said in a statement.
A Politicized Deal Ahead of Elections
The debate over Nippon Steel’s bid has become highly politicized in the run-up to the U.S. presidential election. Trump’s opposition to foreign ownership of the company aligns with his broader protectionist stance, while the Biden administration has also signaled skepticism toward the deal.
With Trump set to meet Nippon Steel’s leadership in the coming days, all eyes will be on whether his remarks signal a potential shift in the fate of the deal or simply another layer of confusion in an already contentious acquisition battle.
