Ishiba: Legal Details Need to be Hashed Out On U.S. Steel; Discussions Will Distinguish Between Acquisition, Investment

The Yomiuri Shimbun

16:57 JST, February 10, 2025

Prime Minister Shigeru Ishiba said Sunday that he expects legal work will be needed to clarify the distinction between investment and acquisition, following the Japan-U.S. summit in which he proposed a modification to the proposed acquisition of United States Steel Corp. by Nippon Steel Corp., on the assumption that U.S. Steel continues to be a U.S. company.

Speaking in an interview with The Yomiuri Shimbun, Ishiba also expressed his view that the situation would move toward a resolution.

At the summit with U.S. President Donald Trump, Ishiba presented a revised plan from the envisaged purchase, which was blocked by former U.S. President Joe Biden. He sought the U.S. leader’s understanding, stressing that the new plan would be an investment rather than an acquisition. Trump agreed with the proposal.

Ishiba said in the interview how symbolic steel is for Trump, who is touting a revival of the U.S. manufacturing industry. The prime minister then revealed that he explained to Trump about the benefits of U.S. Steel remaining an American company and how investment from Japan will help improve the quality of steel.

“I believe the emotional and practical aspects must have together struck a responsive chord in Mr. Trump,” Ishiba said in the interview.

Asked whether the situation was heading toward a resolution, Ishiba said, “I think so.”

“Various details will be worked out in legal discussions to clarify the distinction between acquisition and investment,” Ishiba said, on the premise that U.S. Steel will remain an American company.

Currently, Nippon Steel plans to acquire all of U.S. Steel’s shares and make it a wholly owned subsidiary. Ishiba, however, spoke of the possibility of reviewing that plan. “The government has no intention of intervening one way or another, but it is possible,” he said.

“Negotiations will be conducted with the understanding of what it means [for U.S. Steel] to remain an American company,” the prime minister added.

Trump has expressed his intention to hold talks with Nippon Steel executives soon.

“This is not an act of charity for Nippon Steel, so the company needs to consider its own interests and sincerely respond to Mr. Trump,” Ishiba said.

At the joint press conference following the summit meeting, asked about the issue of raising tariffs on Japan, Trump said, “We didn’t discuss tariffs too much.”

Stating that Japan and the United States do not have a conflict over drugs or illegal immigration, Ishiba was hopeful in the interview. “Japan won’t necessarily be treated the same way [as countries with such problems],” he said.

Regarding Trump’s views on China, Ishiba said, “It is clear that he does not accept changing the status quo by force.” He also said the U.S. president had mentioned the situation in Taiwan during their meeting.

“A personal relationship of trust cannot be built overnight, but the fact that I felt like ‘meeting Trump and talking to him in person again’ means a lot,” Ishiba said.