US Steel-Nippon merger has received approval from foreign regulators

All non-U.S. regulatory approvals related to the proposed merger of U.S. Steel and Japan’s Nippon Steel have been approved, the companies announced Thursday.

The $14.9 billion deal was approved on April 12 by 99% of U.S. Steel voting shareholders.

The companies said they received regulatory approvals from the European Commission’s Directorate-General for Competition, the Mexican Federal Economic Competition Commission, the Serbian Competition Commission, the Slovak Ministry of Economy and the Turkish Competition Authority.

Additionally, the UK’s Competition and Markets Authority confirmed there were no further questions regarding the merger, the companies said.

“(The approvals) clearly demonstrate that the transaction with Nippon Steel is pro-competitive and supports the strategic advantages of foreign investment,” said David Burritt, president and CEO of US Steel. “With Nippon Steel, US Steel will become the world’s leading steel producer with enhanced technologies and resources to support a stronger steel industry with increased competition.”

The companies said the merger transaction is expected to close in the second half of this year – subject to meeting closing conditions, including obtaining the required U.S. regulatory approvals.

“We appreciate this important milestone of receiving the regulatory approvals necessary to complete the transaction from all non-U.S. authorities,” Takahiro Mori, representative director and vice president of Nippon Steel, said in a statement. “Our goal in this transaction was clear and consistent – ​​to protect and grow US Steel. We are confident that this transaction will benefit all US Steel stakeholders, including customers, employees, suppliers and communities.”

On December 18, US Steel announced an agreement with Japan’s largest steel producer.

She emphasized that the company’s headquarters will remain in Pittsburgh.

The offer from Nippon Steel, the world’s fourth largest steel producer, was significantly higher than the offers submitted to US Steel. In August, Cleveland-Cliffs offered $7.3 billion and Sewickley-based industrial conglomerate Esmark offered $7.8 billion.

US Steel was founded 122 years ago by business titans Andrew Carnegie, JP Morgan and Charles Schwab. Since then, it has been headquartered in Pittsburgh.

President Joe Biden opposed the planned sale of U.S. Steel to Nippon, stating in March that the United States must “keep strong U.S. steel companies powered by American steelmakers.”