U.S. President Donald Trump’s comments last week that Nippon Steel would invest in United States Steel instead of pursuing a takeover surprised shareholders. It turns out that his words blindsided both companies as well.
The proposed investment disclosed by Trump on Feb. 7 following a meeting at the White House with Prime Minister Shigeru Ishiba wasn’t communicated to either of the steelmakers beforehand, according to people familiar with the matter, who asked not to be identified because they weren’t authorized to discuss the matter.
The president’s comments sent shares of U.S. Steel plunging that day. Ishiba reiterated the planned investment in a TV interview last Sunday in Japan. But both companies, who are still trying to salvage their $14.1 billion blockbuster merger, remain silent on the idea. In private, they’re uncertain as to what such an investment would even look like, the people said.
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