Nippon Steel delays U.S. Steel acquisition

Nippon Steel Corporation has announced a delay in its planned acquisition of United States Steel Corp., with the closing date now pushed to the first quarter of 2025. The delay comes after the Committee on Foreign Investment in the United States (CFIUS) referred the matter to President Biden on December 23, 2024, initiating a 15-day presidential review period.

The Japanese steelmaker faces multiple regulatory hurdles, including a pending review from the U.S. Department of Justice's Antitrust Division. Despite these challenges, the deal had previously secured overwhelming shareholder approval, with over 98% of U.S. Steel shares voting in favor during a special meeting earlier in 2024.

The proposed acquisition has drawn mixed reactions from various stakeholders. Opposition has come from the United Steelworkers union, competing bidder Cleveland-Cliffs Inc., and several elected officials who have raised national security concerns about foreign ownership of U.S. Steel's assets. However, some U.S. Steel employees in Pittsburgh have shown support for the transaction.

Nippon Steel maintains confidence in the deal's positive impact, emphasizing its commitment to protecting and growing U.S. Steel's operations. The company has pledged significant investments in facilities and workforce, aiming to strengthen American steel making capabilities and ensure national security interests.

The company expressed gratitude to stakeholders in both countries for their support and cooperation. It remains optimistic about President Biden conducting a fair, fact-based evaluation during the review period, which falls within his final month in office, as his term ends January 19, 2025.

The completion of this significant international business transaction now hinges on obtaining necessary regulatory approvals and meeting other conditions specified in the merger agreement, with the timeline extended beyond the originally planned year-end 2024 closure.