U.S. Steel sale lands non-US regulatory approvals
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Pittsburgh-based U.S. Steel announced Thursday that its proposed $14.1 billion sale to Nippon Steel Corp. in Japan has received all regulatory approvals outside of the United States.
The deal, which has not been approved by U.S. regulators, received approval from U.S. Steel shareholders last month.
U.S. Steel and Nippon said the acquisition was approved by 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.
“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,” U.S. Steel CEO David Burritt said in a news release. “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.”
The sale has drawn opposition from President Joe Biden’s administration on economic and national security grounds, and from former President Donald Trump, the Republican presidential candidate in November’s election.
The United Steelworkers union has also opposed the acquisition, saying the deal violates the union’s Basic Labor Agreement in a number of ways, particularly the successorship clause, which requires U.S. Steel “to guarantee that the ultimate parent company of the new corporate owner will itself assume the labor, benefits, and pension agreements rather than assigning the obligations to a subsidiary that has limited control of its business or finances.”
The union said it did not agree to the arrangement that Houston-based holding company Nippon Steel North America would assume the union’s labor, pension, retiree, and other agreements.
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 in Indiana with its Gary Works operation that at one time employed some 30,000 people. The steelmaker also operates the Midwest Plant in Portage.
The Associated Press contributed to this report.