President Donald Trump suggested Friday on stage with Japan's prime minister that Nippon Steel will not be allowed to buy U.S. Steel.

"They'll be looking at an investment rather than a purchase," Trump said. "U.S. Steel is a very important company to us. It was the greatest company in the world for 15 years, many years ago, 80 years ago, and we didn't want to see that leave, and it wouldn't actually leave, but the concept psychologically [is] not good.

"So they've agreed to invest heavily in U.S. Steel, as opposed to own it. And that sounds very exciting," the president added.

Neither U.S. Steel or Nippon had an immediate response.

Trump said he planned to meet with the head of Nippon next week to "work out the details."

"I'll be there to to mediate and arbitrate," he said.

"We want to ensure that companies build their products and factories here in America, not simply buy the assets that we have," Trump added.

U.S. Steel workers had mixed reactions to the idea of an investment instead of a purchase.

"I can't see [Nippon] putting billions in upgrades into a company they don't own," said Bob Rudnik, a worker at U.S. Steel Irvin Works.

"Investment over purchase is a game changer," another worker wrote on social media.

Some observers said they expect any major investment to result in a joint venture.

Chris Masciantonio, a former U.S. Steel executive, noted that U.S. Steel has an existing operation with Japan's Kobe Steel in Ohio, PRO-TEC Coating Co., which he described as "a very successful operation."

It wasn't immediately clear how an investment plan would impact plans by rival bidder Cleveland-Cliffs and the United Steelworkers union — both of which opposed the tie up with Japan — to pursue their own domestic merger.

Chris Briem, a regional economist at the University of Pittsburgh's Center for Social and Urban Research, wrote on social media that an investment from Japan could be "the worst possible outcome" for the Ohio steelmaker.

It also remained unclear what Nippon would stand to gain from an investment, with analysts noting that Nippon would need equity in return.

Trump's announcement was not without confusion, as the president mentioned automaker Nissan, which has not been involved in the negotiations with U.S. Steel, or its suitor, Nippon Steel, the largest steelmaker in Japan.

The president separately highlighted Japan's plans to open auto plants in the U.S., including by Toyota and Nissan.

While the president provided no details of what Nippon's investment might look like, state officials said they were eager to learn more.

"For over 14 months, Governor Shapiro has worked to bring all parties together behind a long-term solution that would protect Pennsylvania jobs, stand up for Pennsylvania workers, and ensure the future of American steelmaking runs through Western Pennsylvania," said Shapiro spokesman Manuel Bonder in a statement. "Governor Shapiro remains focused on those priorities — and we look forward to reviewing the details of the potential investment announced today."

Pennsylvania Senate President Pro Tempore Kim Ward, a Westmoreland County Republican, said she had "no doubt" Trump would consider the deal and seek a solution that benefits steelworkers in Western Pennsylvania.

"While we are still waiting to hear the details of the potential investment, this is a positive development and is good news for the future of southwestern Pennsylvania, the steelworkers, and our heritage," she said in a statement.

Nippon has pledged to invest $2.7 billion in U.S. Steel's plants, including at least $1 billion in the Mon Valley. Without the Japanese investment, American mills could close and U.S. Steel's headquarters might move out of Pittsburgh, U.S. Steel's president and chief executive officer David Burritt said in the fall.

Mr. Burritt met with Trump Thursday to lobby the president for his support. Details of the discussion were not made public.

But in September, on the same day rank-and-file workers rallied in support of the deal Downtown, the company said that "in addition to moving away from integrated steelmaking, the lack of a deal with Nippon Steel raises serious questions about U.S. Steel remaining headquartered in Pittsburgh."

Nippon and U.S. Steel announced the $14.9 billion deal in December 2023, but it has faced persistent political headwinds.

On the campaign trail, both Trump and Democratic nominee Kamala Harris, as well then-President Joe Biden, said they opposed the deal because the iconic Pittsburgh-based steelmaker should remain American-owned. Biden then blocked the deal on Jan. 3, citing national security issues that some experts said could have been mitigated easily.

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