The proposed facility investments have increased significantly according to recent reports.
According to a recent report, Nippon Steel has increased its investment pledge into U.S. Steel to $14 billion.
The investment would be targeted towards existing U.S. Steel facilities and is up from an initial pledge of $2.7 billion.
If the Trump administration allows the merger proposed in December of 2023 to go through, Nippon will put $4 billion towards a new steel mill.
At the time of the original proposed merger, Pittsburgh-based U.S. Steel agreed to be acquired by the Japanese company Nippon Steel. The deal was set to take place for $14.9 billion.
Since the initial pledge of a $2.7 billion investment included in the original offer, Nippon increased that figure to $7 billion in March. The first increase came after former President Joe Biden blocked the proposed deal and President Donald Trump maintained the same position.
In December, the Committee on Foreign Investment in the United States deadlocked over its review of the proposed $15 billion sale. Former President Biden then blocked the deal in January, which led to legal challenges from both U.S. Steel and Nippon Steel.
Under President Trump, the committee has agreed to a second review of the deal. It must issue a recommendation by May 21st. President Trump would then have 15 days to decide whether the deal should go through or not.
U.S. Steel has come out forcefully in support of the deal. The company has said the merger is the only way to prevent steelworker job losses in Pittsburgh.
CEO David Burritt has said the iconic steel company’s headquarters could be moved out of the Steel City without a deal.
The current investment pledge of $14 billion raises the stakes and will be targeted towards infrastructure, according to reports.
Nippon’s pledge will invest $11 billion into U.S. Steel’s infrastructure through 2028. This includes $1 billion towards a green field site, which is expected to grow by $3 billion over the following years.
