Nippon Steel Vice Chairperson Takahiro Mori left Japan for the United States on Wednesday to lay the groundwork for talks between the Japanese company and the administration of U.S. President Donald Trump over its proposed acquisition of United States Steel.
Trump has said that Nippon Steel has agreed to make a big investment in the U.S. company instead of acquiring it, and has voiced his intention to meet with the leader of Nippon Steel as early as this week.
Mori has been in charge of negotiations in the United States on the acquisition plan. Meanwhile, the meeting with Trump is expected to be attended by Nippon Steel Chairperson and CEO Eiji Hashimoto.
The schedule for the meeting is not believed to have been finalized yet.
Assuming that U.S. Steel becomes a wholly owned subsidiary, Nippon Steel has promised to provide the U.S. company with technology to produce high-grade steel and to carry out large-scale repairs of aging blast furnace equipment.
However, Nippon Steel may be forced to significantly revise its plans as Trump has said that the Japanese company will not take a majority stake in U.S. Steel.
There are concerns that Nippon Steel may not be able to prevent technology leaks if it does not fully acquire U.S. Steel.
At a parliamentary meeting on Wednesday, Prime Minister Shigeru Ishiba said that it is "extremely important" to consider such concerns when reviewing Nippon Steel's investment plan.
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