Nippon Steel Extends Closing Date for $14.9 Billion U.S. Steel Acquisition
Japan’s Nippon Steel has extended the closing date for its $14.9 billion purchase of U.S. Steel, citing ongoing review by the U.S. government. The revised closing date is now set for the first quarter of 2025, previously scheduled for the third or fourth quarter of 2024.
The deal, which was announced in December, has faced intense opposition from the United Steelworkers union (USW) and politicians. U.S. President Joe Biden has expressed concerns that the deal could harm the U.S. steel industry and has vowed to block it. The Committee on Foreign Investment in the United States (CFIUS) has also referred the deal to Biden for review, giving him 15 days to decide whether to approve or block the merger.
Nippon Steel has expressed confidence that the acquisition will protect and grow U.S. Steel, and has offered to move its U.S. headquarters to Pittsburgh, where U.S. Steel is based. The company has also promised to honor all agreements in place between U.S. Steel and USW.
U.S. Steel shares were up 1.7% before the bell, despite never having reached the offer price of $55 per share. The deal still faces significant hurdles, including a review by the antitrust division of the U.S. Department of Justice, which has not specified when it may be completed.
Japan Prime Minister Shigeru Ishiba has urged Biden to approve the merger, citing the importance of strengthening ties between the two countries. Despite the opposition, U.S. Steel shareholders overwhelmingly voted in April to approve the acquisition.
