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| Nippon Steel |
Japanese steel giant braces for regulatory uncertainty as U.S. revisits $15B acquisition of U.S. Steel.
Nippon Steel has forecast a 43% fall in net profit for the current fiscal year, citing a deteriorating global steel market and growing regulatory uncertainty around its $15 billion bid for U.S. Steel. The company expects a profit of ¥200 billion ($1.4 billion) for the fiscal year ending March 2026, down from ¥350.2 billion the previous year.
The Japanese steelmaker attributed the decline to weaker demand, price pressures, and unpredictable U.S. trade policy, particularly under the administration of President Donald Trump, who returned to office in January. Trump has instructed the Committee on Foreign Investment in the United States (CFIUS) to reassess the acquisition over national security concerns.
While Nippon Steel stressed the direct impact of U.S. tariffs is limited, as its American exports are small-volume, high-specification products that are difficult to replace, it warned the indirect consequences could be significant.
In a statement Friday, the company said it is “fully cooperating with the review process” and confirmed that all parties are “taking necessary steps” to close the deal, though no guarantee can be made.
Vice Chairman Takahiro Mori said a recommendation from CFIUS is expected by May 21, with a final decision by June 5.
President Trump has indicated openness to a minority investment structure, which could force a restructuring of the deal if full acquisition approval is denied.
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