Steel Mills

USS, Nippon deal clears regulatory hurdles outside of US

May 30, 2024

U.S. Steel and Nippon Steel Corp. (NSC) said they have received all regulatory approvals outside of the US for the proposed sale of USS to the Japanese steelmaker.

However, regulatory hurdles in the US still remain for the deal, which is valued at over $14 billion.

“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,” David B. Burritt, U.S. Steel’s president and CEO, said in a statement on Thursday.

The companies said they currently expect the transaction will be completed in the second half of 2024. They noted this was “subject to the fulfillment of the remaining, customary closing conditions, including the receipt of required US regulatory approvals.”

The approvals of the deal have been received from:

Directorate-General for Competition of the European Commission (pursuant to the EU Merger Regulation and, separately, the Foreign Subsidies Regulation)
the Mexican Federal Economic Competition Commission
the Serbian Competition Commission
the Ministry of Economy of Slovakia
the Turkish Competition Authority

Also, U.S. Steel said the UK Competition and Markets Authority confirmed it had no additional questions regarding the proposed transaction.

“Our goal for this transaction has been clear and consistent–to protect and grow U.S. Steel,” Takahiro Mori, representative director and vice chairman of Nippon Steel, said in the statement.

U.S. Steel shareholders voted in favor of the deal in April.

The United Steelworkers (USW) union remains opposed to the merger.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.