Even Nippon Steel, one of Japan’s largest steel manufacturers has joined the Trump administration’s Sakoku. They are jointly requesting the longest extension of the pause allowed by their ongoing litigation concerning Nippon Steel’s proposed acquisition of U.S. Steel. This request is particularly urgent as the current pause is scheduled to end on June 5. The parties are requesting another 8 days to address issues with the agreement.
A divided U.S. appeals court upheld that pause in litigation on April 7. This came just after President Donald Trump’s Administration chose to open a second national security review of the proposed merger. Our review will consider what the developments mean for national security. This is happening just as Nippon Steel moves forward on its record-breaking $14.9 billion hostile takeover bid for U.S. Steel.
Most analysts are betting the U.S. appeals court will go along with the extension request. This decision will provide both parties extra time to address the intricacies of the transaction. The Japanese firm and the Trump administration are clearly aligned at this pivotal moment. Their joint efforts shed light on the growing tension between global business interests and national security concerns.
President Trump had the steel industry at the focal point of his speech. Here he is giving a speech at the U.S. Steel Corporation-Irvin Works in West Mifflin, Pennsylvania, on May 30. His administration takes a keen eye to foreign investments. That’s particularly true for industries deemed critical to national security, in the current case, that is.
Between Nippon Steel’s on-again, off-again attempt to take over U.S. Steel. It’s the largest foreign investment in the American steel industry in the last 5 years. The firm is currently in the process of working through regulatory hurdles. It continues to be dedicated to ensuring its acquisitions align with U.S. policy goals and address market forces.