Nippon Steel had high hopes for the $14.1 billion takeover of U.S. Steel. But with the deal now likely to unravel, the biggest Japanese steelmaker will be forced to consider next steps for rapid growth.
The bid for the once-fabled American company ran into a maelstrom of political opposition in the U.S. in the run-up to the presidential election. U.S. President Joe Biden is planning to formally block the acquisition before the end of the month, Bloomberg reported this week.
That’s left Nippon Steel, which aimed to boost crude steel production capacity by 30% with the U.S. Steel deal, in the lurch. The takeover, which would have made it the world’s No. 3 steelmaker, was aimed at reducing its dependence on the waning Japanese market and helping it compete with the big mills in China, whose excessive output and surging exports has sparked a trade backlash around the world.
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