Trump Hints At Alternative Structure For Nippon Steel's US Steel Deal: 'They've Agreed To Invest Heavily… As Opposed To Own It'

U.S. President Donald Trump is contemplating the approval of Nippon Steel‘s (OTC:NPSCY) $14.1 billion bid for U.S. Steel Corp. (NYSE:X) as an investment, rather than a purchase.

What Happened: Trump’s unexpected comments came amid Nippon Steel’s year-long pursuit of U.S. Steel, which has faced staunch opposition from the President himself. The remarks were made in the presence of Japanese Prime Minister Shigeru Ishiba at the Oval Office.

Nippon Steel “is going to be doing something very exciting about U.S. Steel,” the president said.

“They’ll be looking at an investment rather than a purchase.”

"They've agreed to invest heavily in U.S. Steel, as opposed to own it."

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The details of the investment and any potential changes to the deal structure remain unclear. However, Trump has announced plans to meet with the head of Nippon Steel next week to “mediate and arbitrate.”

"It is not one sided. It will be reciprocal, it will be mutually beneficial," Ishiba said.

Comments from Trump came a day after his meeting with U.S. Steel CEO David Burritt at the White House. The deal has become a contentious issue, with both Biden and Trump having previously vowed to block it.

Why It Matters: Nippon Steel was locked in a legal dispute with the Biden administration last year over its stalled acquisition of U.S. Steel. In early January, CEO Eiji Hashimoto dismissed tariffs as an inadequate solution for bolstering the U.S. steel industry. He defended the merger, asserting that it would strengthen national security by creating a more resilient and competitive company.

The lawsuit filed by Nippon Steel, last year, challenges the U.S. administration's decision, claiming it violated constitutional due process rights. The earlier opposition from Biden was reportedly aimed at securing union support in Pennsylvania, a key state in the political landscape.

U.S. Steel stock closed nearly 6% lower on Friday after a turbulent trading session. Shares initially surged following a CBS report suggesting that Trump might approve the deal. However, the gains were erased after Trump reaffirmed his opposition to the acquisition in comments.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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