United States Steel Corp (U.S. Steel) and Nippon Steel have announced that they have received all regulatory approvals outside of the United States related to their proposed $14.9 billion merger. The two steelmakers reiterated that they expect the deal to be completed in the second half of this year.
Nippon Steel, a Japanese steel producer, clinched the deal to acquire U.S. Steel last December. However, the merger has faced political opposition in the United States, with lawmakers raising concerns about national security and President Joe Biden stating that he wants U.S. Steel to remain domestically owned.
Despite securing all necessary approvals outside of the U.S., the companies still need to clear the final hurdle of obtaining regulatory approval from the relevant authorities in the United States. The proposed merger has drawn scrutiny from U.S. lawmakers and the Biden administration, who are wary of the potential implications for national security and the domestic steel industry.
The two companies have maintained that the merger would strengthen their global competitiveness and create a more resilient supply chain. However, the political opposition in the U.S. has posed a significant challenge to the deal’s completion.
With the non-U.S. regulatory approvals now in place, the focus will now shift to the companies’ efforts to address the concerns raised by U.S. lawmakers and the Biden administration. The successful completion of the merger remains contingent on securing the necessary approvals from the relevant U.S. authorities.