Tomorrow (May 21st) is the final deadline for the Committee on Foreign Investment in the United States (CFIUS) to review the re-examination of Nippon Steel & Sumitomo Metal Corporation's merger case. At the last moment, Nippon Steel is considering significantly increasing its investment commitment to $14 billion, including a new steel plant construction project worth up to $4 billion, in an effort to gain approval from the U.S. side for this acquisition case.

According to a report by Reuters on the 19th, informed sources disclosed that if the acquisition gains recognition from the U.S. government, Nippon Steel has committed to investing a total of $11 billion in infrastructure construction for U.S. Steel Company before 2028, including an initial $1 billion greenfield investment, and plans to further increase an additional $3 billion within a few years. This investment commitment was previously undisclosed.

The U.S. Steel Company's plant in Clairton, Pennsylvania - Yomiuri Shimbun

In addition, according to multiple Japanese media reports such as the Yomiuri Shimbun and Nikkei Shimbun, Nippon Steel announced in December 2023 the acquisition of U.S. Steel Corporation for 2 trillion yen (approximately $14.1 billion). The initial plan was to invest $1.4 billion in equipment modernization projects for the company, and later in August 2024, it committed to raising this to $2.7 billion, proposing the establishment of a "trade committee" composed of American members to eliminate concerns of the Committee on Foreign Investment in the United States (CFIUS), but it still failed to achieve its goal.

Subsequently, former U.S. President Biden, in order to dig a pit for Trump, vetoed this highly anticipated cross-border merger case before leaving the White House in January 2025, citing "threats to national security."

In February, during the Japan-U.S. summit talks, then Prime Minister Shinzo Abe submitted an amended proposal including additional investment content to Trump. Nippon Steel Chairman and CEO Hidejiro Hashimoto attended the meeting to elaborate on the new investment plan. After a series of diplomatic efforts by Japan, President Trump instructed the Committee on Foreign Investment in the United States (CFIUS) to restart the review process for this acquisition case in April.

This move was seen by Japan as one of the final efforts to secure approval for the acquisition, with the investment commitment amount rising sharply from the initial $1.4 billion to ten times the original amount. It should be noted that the two companies face the final deadline for national security review of the merger case on the 21st of this month. According to relevant regulations, President Trump needs to make a final decision within 15 working days, but this time limit may be delayed.

Currently, it remains uncertain whether Japan will receive approval from President Trump for hundreds of billions of dollars in new investments. Neither U.S. Steel Corporation, the White House, nor the Treasury Department, which oversees the Committee on Foreign Investment in the United States (CFIUS), have made any comments on this matter.

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Original source: https://www.toutiao.com/article/7506432691416449577/

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