Nippon Steel's $14.1 billion acquisition of U.S. Steel under consideration - CBS
Investing.com -- President Trump is contemplating the approval of a $14.1 billion acquisition of U.S. Steel by Japan's Nippon Steel. However, a final decision on the matter has not been made, according to report from CBS, citing sources.
The President is expected to discuss the potential merger with Japanese Prime Minister Shigeru Ishiba on Friday. The discussion will also cover issues related to the automotive industry and tariffs.
Nippon Steel had previously proposed a concession to the U.S. government. In this proposal, the company offered the U.S. government the power to veto any changes to U.S. Steel's production capacity. This proposal was a slight modification to a recommendation from the Committee on Foreign Investment in the United States (CFIUS).
The proposed change was intended to address concerns that the potential purchase of U.S. Steel by Nippon Steel could result in a decrease in domestic steel production and a reduction in U.S. workforce. The proposed alteration in the mitigation agreement would transfer all decision-making authority on changes to production capacity to the U.S. government.
While the transaction is being considered, it is not certain whether Nippon Steel has offered any additional concessions.
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