TOKYO: Japan’s Nippon Steel is considering proposing a bold change in plan from its previous approach of seeking to buy US Steel, Chief Cabinet Secretary Yoshimasa Hayashi said on Monday (Feb 10), though the company declined to comment.
“We are aware that Nippon Steel is not looking at this as a mere acquisition, but is considering a bold proposal that is completely different from anything it has done in the past,” Hayashi told reporters.
Hayashi said it would create a win-win situation for both Japan and the US through significant investments and the production of high-quality products demanded by the US and global markets.
On Friday, US President Donald Trump said Nippon Steel’s US$14.9 billion bid for US Steel would take the form of an investment instead of a purchase. Two people familiar with the matter said the biggest Japanese steelmaker had not withdrawn its bid.
Nippon Steel declined to comment on Hayashi’s comment as well as Trump’s latest statement that no one can have a majority stake in US Steel.
Trump made the comment on Sunday when speaking to reporters on Air Force One. He also said the US will impose 25 per cent tariffs on all steel and aluminium imports on top of existing duties, and that he will announce the new metals tariffs on Monday.
Shares in Nippon Steel fell 1.5 per cent by midday on Monday, compared with a 0.1 per cent decline in the Nikkei index.
LONG PURSUIT
Nippon’s pursuit of US Steel has stretched on for more than a year, with Trump condemning the proposal on numerous occasions, before Friday’s more tempered remarks at the Oval Office with Japanese Prime Minister Shigeru Ishiba at his side.
It was unclear if the investment referred to a new deal structure or what the details of the transaction would be, but Trump said on Friday he would meet with the head of Nippon Steel this week and he would be involved “to mediate and arbitrate”.