Nippon Steel is pledging $14 billion in new investment in U.S. Steel, including building a new $4 billion steel mill, in an effort to save its acquisition of U.S. Steel, according to a report.

Reuters is reporting Nippon Steel greatly increased its promised investment in the United States if the federal government greenlights its $14.9 billion acquisition of U.S. Steel.

The steelmaker, the fourth largest in the world, had previously promised to invest $2.7 billion in the United States, including nearly $1 billion in U.S. Steel's flagship Gary Works. It, for instance, pledged to invest $300 million in relining Blast Furnace No. 14.

U.S. Steel and Nippon Steel spokespeople did not respond to requests for comment.

Citing a document and anonymous sources, Reuters reports Nippon Steel will now invest $11 billion in U.S. Steel's operations through 2028 and will build a new steel mill at a greenfield site. Long an integrated steel company, U.S. Steel has been investing billions of dollars in non-union mini-mills in Arkansas. Nippon Steel had said it would run U.S. Steel as an American subsidiary with Pittsburgh-based leadership and allow it to continue to pursue the same strategy under new ownership if the deal goes through.

Nippon Steel Vice Chairman Takahiro Mori visited Washington D.C. last week to lobby to save the merger, which started in 2023 but has faced bipartisan political opposition.

Nippon Steel is seeking last-minute approval of the deal with the Committee on Foreign Investment in the United States slated to complete a new review of the deal by Wednesday. The Trump administration, which has proposed that Nippon Steel invest in U.S. Steel as a minority shareholder rather than as an outright owner, is expected to rule based on the findings within 15 days.

If the deal falls through by a June deadline, Nippon Steel will have to pay a $565 million breakup fee to U.S. Steel. It also will face 25% tariffs to the market in the United States, one of the largest consumers of steel in the world.
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