Nippon Attempts To Revive US Steel Deal With Larger Capital Investments

Nippon Steel and United States Steel Corp. ( X ) are reportedly negotiating with the Trump administration to revive their $14 billion merger by significantly boosting investments in U.S. Steel's Rust Belt facilities. 

The Details: According to a report from Semafor, sources familiar with the discussions said the Japanese steelmaker has proposed raising its initial $2.7 billion commitment to upgrade U.S. Steel plants to as much as $7 billion. 

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The deal was initially blocked by the Biden administration over national security concerns, and now hinges on strategic concessions. While President Donald Trump previously opposed the acquisition, he signaled openness in February to Nippon taking a minority stake or structuring the deal as an investment rather than a full buyout. 

The revised terms would preserve the $55-per-share acquisition price and Nippon would begin making sizable capital investments into U.S. Steel as soon as possible, the sources said. 

Legal and political hurdles remain. Both companies are involved in a lawsuit against the U.S. government, which recently sought deadline extensions to continue merger talks. The United Steelworkers union and activist investors like Ancora have also voiced opposition and are lobbying the Trump administration for alternative plans. 

X Price Action: According to Benzinga Pro, shares of U.S. Steel climbed in early trading, but ended Friday's session 0.02% lower at $43.00 amid a broad market sell-off. 

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