U.S. Steel Sparks Retail Buzz On Report Of $14B Investment By Nippon Steel: Retail’s Divided

U.S. Steel (X) stock drew retail attention on Monday after a report said Japan’s Nippon Steel has pledged to build a new steel mill as part of a $14 billion investment package for the American firm.

Reuters reported that Nippon Steel, which is looking to persuade the Donald Trump administration to allow its buyout of U.S. Steel, will invest $11 billion in the Pennsylvania-based company’s infrastructure.

The pledge includes $1 billion in a greenfield site, which is expected to grow by $3 billion over the following years, the report added.

U.S. Steel shares extended gains in after-hours trading after rising more than 3% in the regular trading session.

The two companies are waiting for the findings of a fresh review by the Committee on Foreign Investment in the United States, which could decide the deal's future.

Nippon had agreed to buy U.S. Steel for $14.9 billion in December 2023, banking on an expected rise in demand for steel in the U.S. following a landmark infrastructure law.

However, the deal was opposed by the influential United Steelworkers union, Joe Biden, and Trump, which showed the importance of the company based in the crucial swing state of Pennsylvania.

In the final leg of his Presidency, Biden had blocked the deal citing national security concerns. While Trump has also said U.S. Steel should remain domestically owned, he ordered a review last month.

Trump is expected to announce his decision by June 5.

Retail sentiment on Stocktwits was in the ‘neutral’ territory while retail chatter rose more than 200%.

“No one is going to say no now to a $14 billion investment into a US company,” one retail trader said.

“They'll destroy ‘domestic’ manufacturers, and we'll have to see if that ‘promised’ investment ever materializes,” a more skeptical user said.

U.S. Steel stock has gained 21.7% year to date (YTD).

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