Nippon Steel Delays US Steel Acquisition Amid Regulatory Reviews

Acquisition Timeline Extended
Nippon Steel Corp. has announced that it will not be able to finalize its acquisition of United States Steel Corp. (U.S. Steel) by the end of 2024 as originally planned. The company now expects the transaction to close in the first quarter of 2025, pending regulatory approvals. This delay comes after a referral from the Committee on Foreign Investment in the United States (CFIUS) to President Joe Biden, who must make a decision within 15 days of receiving the referral. Additionally, the Antitrust Division of the U.S. Department of Justice is still reviewing the deal, further prolonging the timeline.

Regulatory Approvals Still Pending
The U.S. government is conducting a thorough review of the acquisition due to national security concerns raised by some lawmakers, industry competitors, and unions. Nippon Steel has expressed confidence that President Biden will approve the deal following a fair and fact-based evaluation. The company also emphasized that the merger would create a stronger, more competitive steelmaker in the U.S., benefitting American workers and the steel industry. U.S. Steel shareholders overwhelmingly approved the deal in early 2024, with more than 98% of shares voting in favor.

National Security and Industry Concerns
Despite the broad support from U.S. Steel shareholders, the deal faces opposition from various stakeholders, including the United Steelworkers (USW) union, rival bidder Cleveland-Cliffs, and some elected officials. These critics have voiced concerns over the national security implications of a foreign company acquiring U.S. Steel, especially given the strategic importance of the U.S. steel industry. In response, Nippon Steel has reassured stakeholders that it intends to maintain the U.S. Steel facilities and workforce, with plans for significant investments aimed at ensuring the long-term viability and growth of American steelmaking.

Commitment to U.S. Steel’s Future
Nippon Steel remains optimistic about the future of the acquisition and is committed to investing heavily in U.S. Steel’s mills, mines, and workforce. The company believes that the merger will not only safeguard U.S. steel production but also enhance U.S. national security by strengthening the domestic steel supply chain. Despite ongoing opposition, the company expressed gratitude for the support it has received from U.S. Steel employees, local communities in Pittsburgh, and government officials in both the U.S. and Japan.