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Nippon Steel is upping its commitment to invest in U.S. Steel to $14 billion if its proposed acquisition of the Pittsburgh-based steelmaker is approved, Reuters reported Monday.
That commitment reportedly includes a new $4 billion steel mill. A location for the facility has not been disclosed.
U.S. Steel first announced plans for the acquisition in December 2023 after another purchase offer from rival Cleveland-Cliffs was rejected. The Japanese steelmaker previously said it would invest $2.7 billion in U.S. Steel, including nearly $1 billion in the company’s Gary Works operation in northwest Indiana.
Reuters cited a document and three unnamed sources in its report, which said Nippon Steel will invest $11 billion in U.S. Steel’s operations through 2028, including $1 billion for a steel mill at a greenfield site that could grow by $3 billion over time.
The sale was blocked in January by former President Joe Biden after the Committee on Foreign Investment in the United States, known as CFIUS, failed to reach consensus on the possible national security risks of the deal.
However, President Donald Trump last month ordered the committee to review the deal again, giving it 45 days to submit recommendations. The president would then have 15 days to make a decision.
Shares of U.S. Steel stock rose nearly 2.3%, to $41.26 per share, near the end of trading Monday.
U.S. Steel founded the city of Gary in Indiana in 1906 with its Gary Works operation that at one time employed some 30,000 people. The steelmaker also operates the Midwest Plant in Portage and employs a total of about 4,000 people in Indiana.
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Just allow the sale