All regulatory approvals outside of the U.S. 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 merger deal was approved by 99% of U.S. Steel’s voting shareholders on April 12.
The companies said the regulatory approvals were received from the Directorate-General for Competition of the European Commission , the Mexican Federal Economic Competition Commission, the Serbian Competition Commission, the Ministry of Economy of Slovakia and the Turkish Competition Authority.
Also, the United Kingdom Competition and Markets Authority confirmed it had no further questions regarding the merger, the companies said.
“(The approvals) are a clear indication that the transaction with Nippon Steel is pro-competitive and supports the strategic merits of foreign investment,” said David Burritt, president and CEO of U.S. Steel. “Together with Nippon Steel, U.S. Steel will become a world-leading steelmaker with enhanced technologies and resources to support a stronger steel industry with enhanced competition.”
The companies said the merger transaction is expected to be completed in the second half of this year — subject to the completion of closing conditions, including the receipt of required U.S. regulatory approvals.
“We appreciate this significant milestone of receiving regulatory approvals necessary to consummate the transaction from all non-U.S. authorities,” Takahiro Mori, representative director and vice chairman of Nippon Steel, said in a statement. “Our goal for this transaction has been clear and consistent — to protect and grow U.S. Steel. We are confident that this transaction will be for the benefit of all of U.S. Steel’s stakeholders, including customers, employees, suppliers, and communities.”
U.S. Steel announced the deal with Japan’s largest steelmaker Dec. 18.
It stressed the company’s headquarters would remain in Pittsburgh.
The offer from Nippon Steel, the world’s fourth-largest steel producer, was significantly higher than others made for U.S. Steel. In August, Cleveland-Cliffs offered $7.3 billion and Sewickley-based industrial conglomerate Esmark offered $7.8 billion.
U.S. Steel was founded 122 years ago by business titans Andrew Carnegie, J.P. Morgan and Charles Schwab. It has been based in Pittsburgh ever since.
President Joe Biden came out in opposition to the planned sale of U.S. Steel to Nippon, saying in March that the U.S. needs to “maintain strong American steel companies powered by American steel workers.”
