United States Steel Corporation (NYSE:X) and Nippon Steel are once again in active discussions to push forward their $55-per-share acquisition deal, according to new reports.
The Japanese steelmaker is considering billions in additional investment to address US political concerns, sources familiar with the talks told Semafor.
Shares of U.S. Steel rose 3% at Friday’s open following reports that Nippon is willing to significantly increase its previously pledged $2.7 billion in capital improvements for U.S. Steel’s facilities, including Pennsylvania blast furnaces.
Some sources suggested the new investment could reach as high as $7 billion.
The increased investment comes as Nippon seeks to gain the approval of president Donald Trump, who had initially opposed the sale but later signaled openness to a strategic investment. Nippon has reportedly engaged with Commerce Secretary Howard Lutnick and other White House officials to advance the deal.
The Biden administration previously blocked Nippon’s shareholder-approved acquisition on national security grounds, leading both companies to file legal challenges. U.S. Steel’s union has also strongly opposed the transaction.