Nippon Steel Ups U.S. Steel Bid Amid Review

Nippon Steel has raised its bid for U.S. Steel, pledging $14 billion in U.S. investments—up from an initial $2.7 billion—including up to $4 billion for a new steel mill and $11 billion for infrastructure upgrades through 2028. The enhanced offer comes after the Biden administration blocked the deal on national security grounds and the Trump administration ordered a new security review, which is expected to conclude soon. Nippon Steel has promised to preserve and create union jobs, operate U.S. Steel as an American subsidiary, and keep U.S.-based leadership. The deal faces continued political and union opposition, and its fate is uncertain ahead of a key deadline. If the acquisition fails, Nippon Steel will pay a $565 million breakup fee and face ongoing 25% tariffs on U.S. steel imports. U.S. Steel shares rose modestly following the news, while Nippon Steel's shares declined.