TOKYO, Feb 10 — Japan’s Nippon Steel today declined to comment on US President Donald Trump saying that no one can have a majority stake in acquisition target US Steel.
Trump made the comment yesterday when speaking to reporters on Air Force One. He also said the US will impose 25 per cent tariffs on all steel and aluminium imports on top of existing duties, and that he will announce the new metals tariffs today.
Shares in Nippon Steel fell more than 2 per cent in early trade, compared with a 0.3 per cent decline in the Nikkei index.
On Friday, Trump said Nippon Steel’s US$14.9 billion bid for US Steel would take the form of an investment instead of a purchase. Two people familiar with the matter said the Japanese biggest steelmaker had not withdrawn its bid.
Nippon’s pursuit of US Steel has stretched on for more than a year, with Trump condemning the proposal on numerous occasions, before Friday’s more tempered remarks at the Oval Office with Japanese Prime Minister Shigeru Ishiba at his side.
It was unclear if the investment referred to a new deal structure or what the details of the transaction would be, but Trump said on Friday he would meet with the head of Nippon Steel this week and he would be involved “to mediate and arbitrate”.
Ishiba, on returning from the US, told broadcaster Nippon TV yesterday that there are legal questions regarding the distinction between acquisition and investment, including the extent of stock ownership.
He said such details are likely to be discussed between Trump and Nippon Steel.
“The key point is whether Americans will feel that US Steel will remain an American company,” Ishiba said.
Nippon Steel today declined to issue a statement on Ishiba’s comments or any management meeting with Trump.
Nippon Steel’s bid for US Steel is central to the Japanese company’s global expansion plan. It was blocked last month by then-US President Joe Biden citing national security.
The firm, together with US Steel, filed a number of lawsuits challenging Biden’s decision.
Nippon Steel Vice Chairman Takahiro Mori last week said the Japanese company had no plan to change the acquisition structure. — Reuters
