Nippon Steel's Acquisition of U.S. Steel Delayed by U.S. Department of Justice
Nippon Steel Corp.'s $14.1 billion takeover of U.S. Steel has been postponed by three months due to a request for additional documentation from the U.S. Department of Justice. The deal, which was already approved by U.S. Steel shareholders, is still expected to go through.
Nippon Steel stated that they will continue to cooperate with the authorities' examination. The sale has faced opposition from both the Biden and Trump administrations, citing concerns about economic and national security implications.
The new timeline could push the closing beyond the November election, but Nippon Steel denied any connection between the delay and the political landscape. The company spokesperson, who requested anonymity, stated that the deal could still close as early as September.
Over 98% of U.S. Steel shareholders approved the takeover in April. Nippon Steel has confirmed that they have secured the necessary financing for the acquisition.
The proposed merger has raised concerns about the impact on unionized workers, supply chains, and U.S. national security. The United Steelworkers union has voiced its opposition to the acquisition.
While the topic of the acquisition was not publicly discussed during Prime Minister Kishida's meeting with President Biden last month, Biden reiterated his opposition to the deal during a recent visit to the Pittsburgh headquarters of the United Steelworkers. He emphasized the importance of keeping U.S. Steel, an iconic American company founded in 1901, under American ownership.
The U.S. steel industry has faced decline over the decades, with global steel production dominated by Japan and, more recently, China. Despite the concerns, the deal stipulates that U.S. Steel will retain its name and headquarters in Pittsburgh.