Nippon Steel’s Deal for U.S. Steel Could Be Resurrected

Nippon Steel’s deal for U.S. Steel could be revived now that it’s under new review by the Trump administration, which says it’s examining whether further action may be appropriate.

Nippon has promised $3 billion in U.S. investments to secure the deal, with reports suggesting the figure could rise to as much as $7 billion. I Photo: Kugel Wikimedia Commons

Activist investor Ancora now appears to support a transaction at around $55 a share—an offer it had previously resisted, Al Root reported for Barron’s Daily. Ancora is still seeking control of U.S. Steel with a new slate of directors.

If elected, that board would aim to complete the sale to Japan-based Nippon Steel for $55 per share. President Joe Biden had previously blocked the deal on national security grounds, and the companies sued to overturn the decision.

Earlier in the process, Ancora appeared firmly against the Nippon deal.

Ancora had sought to replace U.S. Steel CEO David Burritt with former Stelco CEO Alan Kestenbaum to “make U.S. Steel great again in the public market.” Now, it says the prospects for the transaction have significantly improved.

Nippon has promised $3 billion in U.S. investments to secure the deal, with reports suggesting the figure could rise to as much as $7 billion.

While Ancora believes the government may not reverse its stance, it says it won’t stand in the way if the deal is approved. President Trump’s tariffs on steel and aluminum have pushed benchmark steel prices up to $900 per ton, from about $700 at the end of 2024.

Japan is sending a trade delegation to Washington to negotiate after Trump imposed a 24% reciprocal levy.

If the Nippon deal falls through, Ancora plans to sell Big River Steel, which U.S. Steel owns, for $8 billion. It aims to return $5 billion—about $20 per share—to investors as a special dividend and invest the remaining $3 billion in existing facilities to boost earnings by “120%.”