Nippon Steel Corporation, the world’s second largest steelmaker, is in the process of making a landmark acquisition as it aims to acquire U.S. Steel. Needless to say, former President Donald Trump is the wild card in this deal. We now wait for him to announce his final decision, which he is required to do in the next two weeks. Unlike typical defense acquisitions, this acquisition needs presidential approval, and so the review process has been extremely closely monitored.
The confidential review of Nippon Steel’s acquisition of U.S. Steel commenced on April 7, following a memorandum from Trump to his cabinet members. This review period of 45 days is suffused with many issues surrounding the proposed acquisition and its sufficiency. Once this review is finished, Trump has another 15 days to make a final determination.
Fast-forward to today, and as the review is winding down to its end, stakeholders are anxiously awaiting for Trump’s final call on the matter. The ramifications of this acquisition could have far reaching consequences for consumers, producing companies and the steel industry as a whole. And then there’s Nippon Steel’s announced plans to acquire U.S. Steel, underscoring the company’s global ambitions. This move will significantly increase its competitiveness and operational capacity.
The secrecy shrouding the RPA’s review process has brought an air of mystery to the proceedings. The analysts and industry experts are looking further into what this could all mean. Specifically, they are concerned about the effects of these developments on competition between U.S. and foreign steel producers.