Nippon Steel Buys US Steel: Japan-US Relations Stronger Than Ever

Japanese Industry Minister Ken Saito said U.S.-Japan ties are "stronger than ever," although he declined to comment directly on the growing attention in the United States on Nippon Steel's proposed deal to buy U.S. Steel.

Speaking at a news conference, Saito said he was aware of a statement from the director of the US National Economic Council that the purchase merited "serious study" but would not comment directly on private transactions.

“I believe Nippon Steel simply needs to take the proper steps in this procedure,” he said. “In any case, the Japan-US alliance is stronger than ever... and it is important to work together on economic security.”

The White House on Thursday said Nippon Steel's proposed $14.9 billion acquisition of US Steel requires careful review given the company's core role in producing a material that is critical to national security.

The White House response follows a union request for a review of the deal and is not a surprise or a move that affects the U.S.-Japan alliance, a Japanese industry ministry official said.

Nippon Steel will follow the procedure and provide explanations if necessary, the official added.

Nippon Steel said in a statement that it believes the acquisition will benefit all stakeholders. Akira Amari, a ruling party lawmaker, said the government would be willing to help the company if asked, adding that Nippon Steel "should allay employment concerns as soon as possible."

The deal comes ahead of an expected rise in interest rates, which will raise financing costs for companies, a Japanese banker said. U.S. Ambassador to Japan Rahm Emanuel welcomed the deal shortly after it was announced Monday, saying in a post on social media site X that the two companies are "shaping the future of the key steel industry and forging strong ties as they face a more competitive environment." He added that the deal would "deepen ties" between the US and Japan.