US Steel Sales Gain Approvals From Non-US Regulators – Inside INdiana Business

Pittsburgh-based US Steel announced Thursday that the proposed sale of Nippon Steel Corp. in Japan for USD 14.1 billion, it obtained all regulatory approvals outside the United States.

The deal, which has not been approved by U.S. regulators, received approval from U.S. Steel shareholders last month.

US Steel and Nippon said the acquisition was approved by 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.

“We are pleased to receive the regulatory approvals as they clearly demonstrate that the transaction with Nippon Steel is pro-competitive and supports the strategic advantages of foreign investment,” US Steel CEO David Burritt said in a news note. “This deal is the best deal for American steel, the best deal for American jobs, and the best deal for America’s ability to form an even stronger alliance with Japan against China.”

The sale was met with opposition from President Joe Biden’s administration on economic and national security grounds, as well as from former President Donald Trump, the Republican presidential candidate in November’s election.

The United Steelworkers union also opposed the takeover, arguing that the deal violates the union’s Basic Labor Agreement in several respects, particularly the succession clause that requires U.S. Steel “to ensure that the ultimate parent company of the new corporate owner itself assumes the obligations of the labor contract.” , benefits and pensions, rather than delegating responsibilities to a subsidiary that has limited control over its operations or finances.”

The union said it did not agree to an agreement under which Houston-based holding company Nippon Steel North America would take over union contracts regarding labor, pensions, pensions and other contracts.

Earlier this month, Nippon Steel said it was postponing the expected closing of the sale by three months after the U.S. Department of Justice requested more documentation related to the deal.

Both companies still expect to complete the sale in the second half of 2024.

U.S. Steel founded the city of Gary, Indiana, with its Gary Works division, which once employed approximately 30,000 workers. The steelmaker also operates the Midwest plant in Portage.

The Associated Press contributed to this report.

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