Steel Mills
USS, Nippon merger delayed by DOJ antitrust review
Written by Laura Miller
May 3, 2024
The sale of U.S. Steel Corp. to Nippon Steel Corp. has been delayed by the US Department of Justice’s antitrust investigation.
The Justice Department, which is conducting an antitrust review of the merger, has requested additional information from both USS and NSC.
The companies originally anticipated closing the sale in the second or third quarter of 2024. They now expect it to close in the second half of the year – meaning a it could slip into the fourth quarter.
U.S. Steel said in its first-quarter earnings report on Thursday that both companies are working to respond to the DOJ’s request.
“Nippon Steel will continue to fully cooperate with the examination of the relevant authorities and are determined to complete the transaction,” the Tokyo-based steelmaker said in a statement.
The nearly $15 billion sale cleared one hurdle last month when USS shareholders voted to approve the merger.
But in addition to the DOJ antitrust review, the sale still faces an ongoing review by the Committee on Foreign Investment in the United States (CFIUS).
Also, Cleveland-Cliffs and the United Steelworkers union, which is influential in some swing states, oppose the deal. President Biden and former President Donald Trump have expressed opposition to it as well.
Laura Miller
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