US President Donald Trump said Friday that Japanese steelmaker Nippon Steel would make a major investment in US Steel, but that Nippon Steel would no longer seek to acquire the American steelmaker.
Trump, who named Japanese automaker Nissan but appeared to be referring to Nippon Steel, said "they would consider an investment rather than a purchase."
Spokespeople for Nippon Steel and US Steel did not respond to requests for comment on Trump's remarks. US Steel shares closed down 5.8 percent on the news.
The announcement marks a change in stance from Trump, who during his 2024 presidential campaign strongly criticized Nippon's $14.9 billion takeover bid.
Former U.S. President Joe Biden blocked the deal shortly before he left office last month, citing national security concerns. Biden's decision prompted joint lawsuits from the two companies and condemnation from Japanese Prime Minister Shigeru Ishiba.
In a lawsuit filed on Jan. 6, Nippon Steel and US Steel said Biden had improperly used his influence and blocked the deal “solely for political reasons” to gain union support.
In response, US authorities announced that they were extending the deadline for Japanese companies to cancel their acquisition of US Steel to June 18, from an initial deadline of just 30 days.
Trump's remarks suggest his administration is open to Nippon Steel investing in the American steel giant as long as it does not take full control. In theory, that would ensure the company remains in American hands.
“Our concerns about Nippon’s continued interest in U.S. Steel remain unchanged,” United Steelworkers international president David McCall said in a statement.
“Nippon has proven itself to be a trade cheat with a history of dumping its products into our market,” he said.
McCall added that the American Steelworkers Union has not been in contact with any companies or the Trump administration regarding Nippon's proposed investment.
“While we await the details of the proposed investment, we encourage President Trump to continue to safeguard the long-term future of our domestic steel industry by seeking American alternatives,” he added.
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