United States Steel Corporation (US Steel) and Nippon Steel have secured all regulatory clearances from jurisdictions outside of the US for their proposed merger.
These approvals from the regulatory bodies mark a crucial step towards the completion of the deal, which is anticipated in the second half of 2024.
The bodies approving the transaction include 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.
US Steel president and CEO David Burritt said: “We are pleased with the regulatory approvals received, as they are a clear indication that the transaction with Nippon Steel is pro-competitive and supports the strategic merits of foreign investment.
“Together with Nippon Steel, US Steel will become a world-leading steelmaker with enhanced technologies and resources to support a stronger steel industry with enhanced competition.
“This deal is the best deal for American steel, the best deal for American jobs and the best deal for America’s ability to create an even stronger alliance with Japan against China.”
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Besides, the UK Competition and Markets Authority has indicated no objections following a review of a voluntary briefing paper.
A special meeting of US Steel stockholders saw an overwhelming majority, with 71% of the holders of outstanding shares of the company’s common stock voting in favour of the deal.
US Steel and Nippon Steel are now awaiting the fulfilment of customary closing conditions, including the receipt of required US regulatory approvals, to finalise the deal.
Nippon Steel representative director and vice-chairman Takahiro Mori said: “We appreciate this significant milestone of receiving regulatory approvals necessary to consummate the transaction from all non-US authorities.
“Our goal for this transaction has been clear and consistent – to protect and grow US Steel. We are confident that this transaction will be for the benefit of all of US Steel’s stakeholders, including customers, employees, suppliers, and communities.
“US Steel and Nippon Steel are committed to, as in the months past, continuing to fully cooperate with the examination of the relevant authorities and are determined to complete the transaction.”
