EU Approves Nippon Steel’s Acquisition Of U.S. Steel

The European Commission approved Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel on May 6, concluding that “given the limited market position resulting from the proposed transaction between the two companies, no competition issues will arise.” .

Still, the deal faces political opposition in the United States, having to contend with resistance from lawmakers and the United Steelworks union, among others. Nippon Steel has sought to address these concerns by offering to move its U.S. headquarters to Pittsburgh, home to U.S. Steel, and pledging to abide by all agreements between U.S. Steel and the United Steelworkers.

U.S. Steel said the U.S. Justice Department had sought more details on the proposed merger as part of an antitrust review, prompting Nippon Steel to delay the expected closing of the deal until later this year. Nippon Steel announced on the 3rd of this month that the completion of the acquisition of U.S. Steel will be delayed by three months, from the original April-September 2024 to July-December. Despite growing opposition, an overwhelming majority of U.S. Steel shareholders voted in favor of the deal in April.