Nippon Steel has blown new life into the U.S. Steel (X) takeover saga on reports that it still intends to buy 100% of the company.
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Nippon/Trump Meeting on Cards
According to a report in the Japan Times, the Japanese steelmaker is getting ready to inform President Trump that it wants to press on with its plans to make U.S. Steel a wholly owned subsidiary. It was suggested in the report that a meeting between Trump and Nippon Steel’s Chairman and CEO Eiji Hashimoto could take place as soon as next week to lay out the groundwork for talks. The $15 billion deal had seemed to be losing steam following a meeting between Trump and Japanese Prime Minister Shigeru Ishiba last week. Trump told reporters then that Nippon Steel would be investing in U.S. Steel, not buying it, and that he could even help facilitate talks. He declared that taking a majority stake in the company would not be allowed to happen.
Tariffs Strengthen U.S. Steel
Yesterday, Trump was even more effusive, stating that the prospect of 25% tariffs on steel imports into the U.S. from March 12 had given U.S. Steel a “new lease of life.” He said: “I think U.S. Steel right now has all the power. U.S. Steel is through the roof. They’re all through the roof. That’s why I didn’t want U.S. Steel to make a deal with Japan or anybody else.” Shares of U.S. Steel nudged up only 0.2% in pre-market trading. Since Nippon’s advances were first made public back in December 2023 its stock has seen a 20% slide.
Is X a Good Stock to Buy?
On TipRanks, X has a Moderate Buy consensus based on 4 Buy and 3 Hold ratings. Its highest price target is $42. X stock’s consensus price target is $40.17 implying an 3.48% upside.
