According to the agency's findings, Nippon Steel intends to spend $ 11 billion for modernization of US Steel infrastructure until 2028. As part of this sum, the construction of Nowa Huta is planned at the outset, whose cost will initially be $ 1 billion, but this investment can be increased by even another 3 billion.
Until now, these details have not been publicly known – the original declared value of the investment from Nippon Steel was only $ 1.4 billion. According to Reuters, a significantly extended offer is to be the last attempt to convince the US authorities to accept the merger, which were opposed to both Joe Biden and the current President Donald Trump.
The final date of the transaction revision, blocked in January by Biden for reasons related to national security, falls on May 21. After this date, Trump will have 15 days to make a decision, although this term may be extended.
It is not yet known whether the extended offer will prove enough to convince Trump to change his position. However, according to Reuters, she shows the determination of Nippon Steel to enter the American market. In the event of a Japanese company failure, there is a contractual penalty of $ 565 million. In addition, Nippon Steel must face 25 % duties on steel import, introduced during the first term of Trump.
US Steel did not comment on the matter. Also Nippon Steel, the White House and the Treasury Department – responsible for the merger analysis in terms of national security – have not yet answered journalists' questions.
