Nippon Steel advances U.S. Steel takeover bid despite Biden's block

Japan's Nippon Steel eyes partnership with Trump administration to pursue U.S. Steel acquisition.

A view of the entrance to the headquarters of Nippon Steel Corporation in Tokyo, Japan, on January 7, 2025. Photo by David Mareuil/Anadolu/Getty Images

By Alana Salsabila and Anna Fadiah

Nippon Steel, Japan's largest steel producer, remains determined to finalize its $14.9 billion acquisition of U.S. Steel, despite facing opposition from President Joe Biden's administration. In an opinion piece published in the Wall Street Journal, Takahiro Mori, the vice chairman of Nippon Steel, emphasized that the company is committed to working with the incoming administration of President-elect Donald Trump to push through the deal.

Last week, both Nippon Steel and U.S. Steel filed lawsuits after President Biden blocked the acquisition, which had been a significant point of discussion in global steel markets. The lawsuits argue that Biden's intervention in the transaction violated the U.S. Constitution by denying the companies due process. The original deadline to unwind the deal was set to expire in 30 days but has now been postponed until June as the companies await their day in court.

In his Wall Street Journal article, Mori stressed that Nippon Steel and U.S. Steel would go to great lengths to ensure the completion of this deal. "We believe our case is strong, and we look forward to our day in court," Mori stated, underscoring the strategic importance of the acquisition for both companies.

While Nippon Steel navigates legal challenges, other companies have also expressed interest in U.S. Steel. Cleveland-Cliffs, which had its previous offer for U.S. Steel rejected, is now working with Nucor to prepare a potential all-cash bid for the American steel giant, according to a source familiar with the matter.

However, Mori reiterated Nippon Steel's unwavering commitment to the deal, highlighting that Japan is one of the closest allies of the United States. The company firmly believes that there are no national security concerns surrounding the acquisition. “We remain interested in exploring possible partnerships with the new administration to invest in and grow U.S. Steel to benefit American workers, customers, and national security,” Mori wrote.

The decision to pursue lawsuits and challenge Biden's order was not made lightly, Mori explained. He emphasized that Japan's long-standing alliance with the U.S. should be viewed as an asset rather than a threat. "Major companies in allied nations want to invest in the U.S. and employ Americans. Now they wonder if they'll be treated as partners or political pawns," Mori added, calling for a fair and balanced approach to foreign investment.

Nippon Steel's pursuit of U.S. Steel represents not only a significant investment for the Japanese firm but also a broader strategic move within the steel industry. If successful, the acquisition could reshape the U.S. steel market, bringing more competition and investment to a key sector of the American economy.

As the legal battle unfolds and the Trump administration prepares to take office, it remains to be seen how the new leadership will approach foreign investments and takeovers in the U.S. steel industry. Mori's remarks suggest that Nippon Steel is optimistic about finding common ground with the incoming administration, aiming to secure a deal that benefits both U.S. and Japanese stakeholders.

The broader implications of this case could influence future foreign acquisitions in the U.S., especially for companies from allied nations seeking to invest in American industries. With tensions over national security and trade policies at the forefront of U.S. politics, Mori’s call for a fair treatment of international business ventures may resonate as part of the ongoing dialogue surrounding foreign investments.

As the legal and political landscape continues to evolve, the future of Nippon Steel's bid for U.S. Steel remains uncertain. However, the company's determination and willingness to explore partnerships with the Trump administration signals that Nippon Steel is not backing down in its pursuit of this high-stakes acquisition.

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