Steel Mills

USS, Nippon merger delayed by DOJ antitrust review

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

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.