United States Steel and Nippon Steel Receive International Regulatory Approvals for Acquisition
Pittsburgh-based United States Steel Corp. and Japan-based Nippon Steel Corp. (NSC) have announced that the proposed acquisition of U.S. Steel by NSC has received all necessary regulatory approvals outside the United States. The approvals include those from the Directorate-General for Competition of the European Commission, the Mexican Federal Economic Competition Commission, the Serbian Competition Commission, the Ministry of Economy of Slovakia, and the Turkish Competition Authority. Additionally, the United Kingdom Competition and Markets Authority confirmed that it had no further questions regarding the proposed transaction following the submission of a voluntary briefing paper by U.S. Steel and NSC. David B. Burritt, president and CEO of U.S. Steel, stated, “We are pleased with the regulatory approvals received, as they are a clear indication that the transaction with Nippon Steel is pro-competitive and supports the strategic merits of foreign investment.” He added that the deal is beneficial for American steel, jobs, and the country’s alliance with Japan against China. Takahiro Mori, vice chair of the board of NSC, remarked, “We appreciate this significant milestone of receiving regulatory approvals necessary to consummate the transaction from all non-U.S. authorities. Our goal for this transaction has been clear and consistent – to protect and grow U.S. Steel.” In the United States, several politicians, including likely nominees in the 2024 presidential election, have expressed opposition to the deal, citing job protection and national security concerns. In April, 71 percent of the outstanding shares of U.S. Steel common stock voted in favor of the proposed transaction, representing 99 percent of the shareholders who cast a vote. Despite the opposition in the U.S., both companies expect the transaction to be completed in the second half of this year, subject to the fulfillment of the remaining customary closing conditions, including the receipt of required U.S. regulatory approvals.