International Steel Mills

EU OKs Nippon buy of USS, hurdles remain in US

Written by Ethan Bernard

The European Union has approved Tokyo-based Nippon Steel Corp.’s (NSC) proposed buy of U.S. Steel, a report in Reuters said on Monday.

The Pittsburgh-based steelmaker’s European operations consists of the U.S. Steel Kosice integrated mill in Slovakia. The mill has 8,000 employees and an annual production capacity of 4.5 million short tons of steel, according to the company’s website.

Regarding the deal, the European Commission “concluded that the notified transaction would not raise competition concerns,” according to an article in Barron’s.

In the US, hurdles for the deal remain. As previously reported, the US Department of Justice has requested additional information from both USS and NSC in its antitrust investigation.

Subsequently, U.S. Steel and Nippon said the deal, valued at nearly $15 billion, is expected to close in the second half of this year, which means the closing could slip into the fourth quarter.

There is also an ongoing review by the Committee on Foreign Investment in the United States (CFIUS).

Finally, Cleveland-Cliffs and the United Steelworkers union oppose the deal, as well as President Biden and former President Trump.  

When contacted by SMU, an NSC spokesman said the company had no comment at this time.

Ethan Bernard

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