Japanese steelmaker Nippon Steel has significantly raised its investment pledge for US Steel as part of ongoing efforts to secure approval for its proposed $14.9 billion acquisition of the American company, the Financial Times reports.
The updated commitment, which now totals $11 billion by 2028, represents a fourfold increase from the $2.7 billion initially promised earlier this year.
The enhanced investment plan includes a $1 billion allocation for building a new steel mill, with an additional $3 billion expected to be spent on the facility after 2028. Alongside the financial commitment, Nippon Steel has pledged to create tens of thousands of new jobs in the United States over several years, aiming to bolster support amid political scrutiny.
The takeover, first announced in late 2023, has faced substantial political and national security concerns. Former President Joe Biden blocked the deal earlier this year, while former President Donald Trump, who had opposed the acquisition during his campaign, recently indicated that Nippon Steel had abandoned the purchase but would invest heavily in US Steel. Sources close to Nippon Steel have clarified that the company has not withdrawn its acquisition plans.
The deal’s progress has been complicated by a 24 percent tariff on Japanese steel imports imposed by the Trump administration, with Japanese officials currently seeking better terms in ongoing trade negotiations. The Committee on Foreign Investment in the United States (CFIUS) ordered a new national security review of the transaction in April, with a decision expected imminently.
The acquisition agreement requires the deal to close by mid-June, placing pressure on the White House for a final decision soon. Analysts, such as Christopher LaFemina of Jefferies, suggest that Nippon Steel’s increased investment commitment could improve the chances of approval.
The acquisition has also involved legal challenges, with Nippon Steel and US Steel suing the Biden administration, alleging political motivations behind the deal’s blockage. Both parties recently requested a temporary pause in litigation until early June. If the deal falls through, Nippon Steel faces a $565 million break fee.
Nippon Steel’s vice-chair, Takahiro Mori, has conducted several visits across the United States—including Washington, Indiana, and Pennsylvania—in efforts to advance negotiations. Industry experts note that large investment pledges have become a key strategy for companies seeking favorable consideration from the current administration.
However, some uncertainties remain regarding whether Nippon’s investment promises can be formally enforced under existing steel industry labor agreements, which include specific schedules for capital spending.
Neither Nippon Steel, US Steel, nor the White House has issued official statements on the latest developments.
