Nippon Steel has postponed the closing of its $14.1 billion takeover of U.S. Steel by three months due to a request from the U.S. Department of Justice for more documentation. The deal, approved by U.S. Steel’s shareholders, is still expected to go through. Nippon Steel will cooperate with authorities during the review process.
President Joe Biden’s administration and former President Donald Trump have opposed the sale on economic and national security grounds. The new timing may push the closing beyond the election, but Nippon Steel denies any relation to that. Initially set to close in September, the deal is now expected to close by December.
The merger has raised concerns about unionized workers, supply chains, and national security. The United Steelworkers union has opposed the acquisition. Despite meeting with Japanese Prime Minister Fumio Kishida, there was no indication that the topic was discussed in the summit.
During a visit to the Pittsburgh headquarters of United Steelworkers, Biden reiterated his opposition to the purchase, emphasizing the importance of U.S. Steel remaining American-owned. The U.S. steel industry has faced challenges with global competition, but under the deal, U.S. Steel will keep its name and headquarters in Pittsburgh.
