Japan Steel Proposes Revised Plan for US Steel Acquisition to Trump, Including Investment Increase

Japan Steel's revised approach to the US Steel acquisition centers on substantial investment, as Trump mediates discussions

Japan Steel, currently pursuing the acquisition of US Steel, has reportedly presented a new proposal to President Donald Trump. This development was reported by the Nihon Keizai Shimbun (Nikkei) on February 9, 2025. The new proposal was made prior to a meeting between Trump and Japan's Prime Minister Shigeru Ishiba on February 7, 2025.

According to sources, Japan Steel’s latest proposal includes an increase in the investment amount. Initially, Japan Steel planned to acquire US Steel for $14.1 billion (approximately 20.5 trillion KRW), with an additional investment of $2.7 billion (around 3.9 trillion KRW) intended for facility upgrades. However, the new proposal indicates a shift toward focusing on large-scale investment rather than a full acquisition.

In the wake of the meeting between President Trump and Prime Minister Ishiba, the two leaders announced in a joint press conference that Japan Steel would no longer aim to acquire US Steel outright but would instead make substantial investments in the company. Trump revealed his intention to mediate the negotiations, mentioning that Japan Steel was committed to making large investments in US Steel, emphasizing the importance of keeping US Steel as an American company.

Prime Minister Ishiba, speaking on an NHK TV program, also clarified that the plan was not simply about an acquisition. He stressed the need for US Steel to remain an American entity, noting the American public's resistance to a situation where a previously leading global company becomes a subsidiary of a Japanese corporation. According to Ishiba, from President Trump’s perspective, it was essential for US Steel to continue producing high-quality products while remaining American-owned.

Ishiba further discussed the matter in an interview with Nikkei, emphasizing the key issue of whether the United States would accept US Steel remaining a US company while Japan Steel made significant investments. However, Ishiba refrained from elaborating on specific methods for modifying the original acquisition plan.

Previously, under President Joe Biden, Japan Steel’s bid to acquire US Steel had been rejected. However, under the new framework proposed by Ishiba, which focuses on investment rather than full acquisition, discussions are now underway. Although this shift in focus has led to renewed talks, the final outcome remains uncertain.

Nikkei has suggested that while the possibility of Japan Steel’s deal moving forward has revived, it is still unclear whether the negotiations will progress smoothly. The newspaper noted that Trump’s statements about maintaining opposition to a full acquisition while leaving room for negotiation with Japan Steel suggest a degree of ambiguity surrounding the issue.

If Japan Steel intends to alter its plan to acquire all shares of US Steel, the company would first need to cancel the existing agreement and renegotiate under new terms. This process would likely involve a shareholder meeting and require review by U.S. authorities, further complicating the deal.

As this complex situation continues to unfold, it remains to be seen how Japan Steel’s revised approach will be received by both the U.S. government and the American public, particularly in light of the broader implications for international corporate acquisitions.