Nomura Bets Big on US Market Rebound With $1.8 Billion Deal
Nomura Holdings Inc. is telling clients to stay invested through the turmoil that's pervaded financial markets during the escalating trade tensions. With its $1.8 billion acquisition of an asset management business, the Japanese brokerage is putting its money where its mouth is.
'We constantly tell our clients, stay invested through short-term volatility,' Investment Management Chairman Christopher Willcox said in an interview after the firm's most significant deal since it bought Lehman Brothers assets in 2008. 'So if we were not to display those behaviors ourselves, we would not be particularly credible.'
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Chicago Tribune
42 minutes ago
- Chicago Tribune
Trump OKs Nippon Steel investment in U.S. Steel with security guarantees
President Donald Trump's Friday executive order inches Nippon Steel one step closer to a planned investment in U.S. Steel, with the caveat that the Japanese company must follow a 'national security agreement' submitted by the federal government. The terms of the national security agreement weren't detailed in the order, but U.S. Steel and Nippon Steel said in a joint statement that the agreement lays out that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a 'golden share' — essentially veto power to ensure the country's national security interests are protected. Former President Joe Biden cited national security concerns in December when he denied the deal before leaving office. During their respective campaigns, Trump and former Vice President Kamala Harris both said they planned to block the acquisition of U.S. Steel. However, in February, Trump began to try to undo Biden's actions, saying Nippon would drop its $14.1 billion acquisition of U.S. Steel to make an 'investment, rather than a purchase,' according to Post-Tribune archives. The companies thanked the Trump Administration for supporting the partnership. 'This partnership will bring a massive investment that will support our communities and families for generations to come,' the statement said. 'We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' Gary Mayor Eddie Melton, who has been supportive of the deal from the beginning, called the investment 'a pivotal moment for Gary and steelworkers across Northwest Indiana.' 'This development brings hope to steelmaking communities around the country,' Melton said in an emailed statement. 'As the child of a steelworker, I understand firsthand what this means for families who depend on good-paying union jobs. 'This historic partnership with one of our nation's oldest allies delivers exactly what the American steel industry needs — $11 billion in new investments that will ensure the longevity of our facilities, drive environmental sustainability in the process, and protect careers for the next generation of steelworkers.' Melton said he's hopeful that as the details of this partnership emerge, they will provide even greater assurance to workers and their families. United Steelworkers leadership has remained skeptical of a potentiall deal between the two steel companies for months, and last week, the USW filed an information request about the partnership, saying in a statement that union leadership 'have seen nothing credible' about the deal, 'including whether it meaningfully differs from Nippon's initial proposal to acquire U.S. Steel and make it a wholly owned subsidiary.' 'Neither Nippon nor the White House has provided any details on where, exactly, proposed investments will be directed or what kind of accountability or oversight there will be to ensure Nippon makes good on its promises,' said a USW letter to its members. 'We also have seen nothing suggesting that Nippon has backed away from its demand that it would be permitted to pull out of promised investments if we exercise our legal rights during negotiations fighting for a fair contract.' Nippon Steel has never said it was backing off its bid to buy and control U.S. Steel as a wholly owned subsidiary. In August, it was announced that Nippon Steel would invest $300 million into Gary Works. A Nippon executive later said the company would invest $1 billion into the local facility. The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, according to Trump's statement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part of the Committee on Foreign Investment in the United States by the closing date of the transaction. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. Trump has promised that U.S. Steel will keep its headquarters in Pittsburgh, but the companies offered few details on how the golden share would work and what investments would be made. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment, then he said that the deal would preserve '51% ownership by Americans.' Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.'
Miami Herald
an hour ago
- Miami Herald
Stellantis Exec Wants Europe to Adopt Cheap, Tiny, Japanese-Style Kei Cars
Though it may seem different today, more than half a century ago, American and European drivers were not as familiar with Japanese automakers and the types of cars they offered. Today, well-known Japanese brands like Honda, Toyota, and Nissan are primarily recognized in the West for their locally built compact cars, sedans, crossovers, SUVs, and pickup trucks. However, the situation is quite different in Japan. In fact, the majority of vehicles on the streets in Japan are not Accords, Civics, CR-Vs, Corollas, Crowns, or Camrys; instead, many fall under a category of super-compact vehicles known as "Kei cars." These unique compact vehicles are an essential mobility solution for Japanese drivers navigating their roads, but recently, Stellantis Chairman John Elkann encouraged European regulators to consider adopting a similar concept. On June 12, Stellantis Chairman John Elkann emphasized the urgent need for Europe to innovate and produce smaller, more affordable vehicles in the same vein as Japanese 'kei cars.' He pointed out that the high prices of current offerings, which he blamed squarely on excessively strict vehicle regulations, are hurting consumer demand for cars on the continent. During his remarks at the 2025 Automotive News Europe Congress, he pointed out that as recently as 2019, nearly 50 different models were sold in Europe with a price tag below €15,000 ($17,400); however, just a single model under that price tag exists these days. Elkann suggested that Europe should look for inspiration from Japan, where tiny and cheap kei cars have long captured a significant market share. He even proposed that Europe's version of the kei car could be named the E-Car. "There's no reason why, if Japan has a kei car, which is 40 percent of the market, Europe should not have an E-Car," Elkann said. In Europe, Stellantis already sells electric microcars that are classified as quadricycles in some European countries, specifically the bubble-shaped Citroën Ami, Opel Rocks-e, and Fiat Topolino. These vehicles' sales in Europe show a strong market for affordable electric mobility. However, a large variety of cars are offered as kei-compliant vehicles in Japan, including off-roaders like the Japanese-market Suzuki Jimny, roadsters like the Daihatsu Copen, family cars like the Honda N-Box, and even utility-focused kei trucks like the Mitsubishi Minicab. The 'Kei' in Kei car is short for a Japanese word called kei-jidōsha (軽自動車), which roughly translates to "light vehicle" in English. Kei cars are defined by maximum size and displacement restrictions, meaning they are only allowed to have a maximum length of about 134 inches, a width of about 58 inches, a height of about 79 inches, and a gas engine displacement of 660 cubic centimeters. In Japan, Kei cars are seen as around-town vehicles for city-dwellers, as their size and engine restrictions help owners by guaranteeing much lower tax and insurance costs while freeing up much-needed road space. Elkann emphasized that small cars, like Stellantis's own Fiat 500, have historically represented the core of the European automotive industry and served as a symbol of affordable mobility for the masses. Unfortunately, increasing regulations that made cars heavier and more expensive have made them unprofitable to manufacture. Some of the requirements for cars, ranging from small vehicles to SUVs, include safety features such as sensors that detect when a driver falls asleep and an SOS button. Elkann argues that features significantly increase the cost of vehicles primarily used for short city journeys. "We are going to face more than 120 new regulations by 2030" in Europe, he said. "If you look at our engineers, more than 25 percent just work on compliance, so no value is added." Though the buying preferences of the American car-buying public may indicate that no Fiat, Citroën, or Alfa Romeo-branded European E-cars would make it on American shores, this story out of Europe shows that Stellantis is facing two different kinds of problems on two different continents with huge car-buying potential with two wildly different sets of preferences. While we may be preoccupied with Ram Trucks and Jeep stuff, it is important to note that John Elkann and the incoming CEO, Antonio Filosa, are also responsible for keeping a significant number of Europe's car factories buzzing. However, in remarks at the same conference, Elkann said that Filosa was the right choice in an automotive industry with defined challenges in particular regions. "The experience that Antonio had running Argentina, running Brazil, running South America, and recently running North America is very much in phase with how the world is going between regulations, tariffs, and how you ultimately navigate that constructively with political forces," he said. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Los Angeles Times
3 hours ago
- Los Angeles Times
Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms
WASHINGTON — President Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But the iconic American steelmaker and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a ' golden share ' — essentially veto power to ensure the country's national security interests are protected against cutbacks in steel production. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership,' the two companies said. 'This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. U.S. Steel rose $2.66, or 5%, to $54.85 in afterhours trading Friday. Nippon Steel's original bid to buy the Pittsburgh-based U.S. Steel in late 2023 had been valued at $55 per share. The companies offered few details on how the golden share would work, what other provisions are in the national security agreement and how specifically the $11 billion would be spent. White House spokesman Kush Desai said the order 'ensures U.S. Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government. They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said. The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said. U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday. Nippon Steel originally offered nearly $15 billion to purchase U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden's presidency. As it sought to win over American officials, Nippon Steel gradually increased the amount of money it was pledging to invest into U.S. Steel. American officials now value the transaction at $28 billion, including the purchase bid and a new electric arc furnace — a more modern steel mill that melts down scrap — that they say Nippon Steel will build in the U.S. after 2028. Nippon Steel had pledged to maintain U.S. Steel's headquarters in Pittsburgh, put U.S. Steel under a board with a majority of American citizens and keep plants operating. It also said it would protect the interests of U.S. Steel in trade matters and it wouldn't import steel slabs that would compete with U.S. Steel's blast furnaces in Pennsylvania and Indiana. Trump opposed the purchase while campaigning for the White House, and using his authority Biden blocked the transaction on his way out of the White House. But Trump expressed openness to working out an arrangement once he returned to the White House in January. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans,' although Nippon Steel has never backed off its stated intention of buying and controlling U.S. Steel as a wholly owned subsidiary. 'We have a golden share, which I control,' Trump said. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. Boak and Levy write for the Associated Press.
