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European Commission Approves Nippon Steel’s $14.9 Billion Buyout of U.S. Steel

 |  May 6, 2024

The European Commission has greenlit Japan’s Nippon Steel’s acquisition of U.S. Steel for $14.9 billion. Despite facing significant opposition on U.S. soil, the deal has been given the regulatory nod in Europe, with the Commission asserting that it does not pose any competition concerns.

Reuters reported on Monday that the European Commission’s approval comes amid staunch political opposition within the United States. President Joe Biden has been vocal in his opposition to the buyout, advocating for U.S. Steel to remain under domestic ownership. This sentiment has been echoed by several lawmakers in the U.S., who have raised national security concerns over the acquisition.

Despite these objections, an overwhelming majority of U.S. Steel shareholders voted in favor of the deal during a crucial April meeting, signaling significant support from within the company’s investor base.

Last week, U.S. Steel disclosed that the Department of Justice had initiated a more thorough review of the proposed merger as part of an antitrust assessment. This scrutiny underscores the regulatory complexities surrounding such high-value transactions, especially in strategic industries like steel production.

For Nippon Steel, the acquisition of U.S. Steel represents a strategic move toward bolstering its global footprint. As the world’s fourth-largest steel maker, Nippon Steel aims to leverage the deal to propel its crude steel capacity toward the coveted 100 million metric tons mark, further solidifying its position in the competitive global steel market.

Source: Reuters