May 8, 2024

Nippon Steel Postpones US Steel Acquisition to Late 2024

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Nippon Steel announced on May 3 that they would be changing the completion date of their planned acquisition of United States Steel from April to September 2024 to July to December 2024. Nippon Steel and United States Steel received a request from the US Department of Justice regarding an Antimonopoly Act review, asking for additional information and materials. The companies will also be monitoring the US presidential election scheduled for November.

United States Steel, with a strong sense of optimism, shared an update on its plan and its recent earnings release. The company confidently stated that it is making significant progress towards completing the transaction, which is expected to be finished by late 2024, subject to any regulatory approvals required. Nippon Steel also confirmed that they will fully cooperate with the relevant authorities to review and complete the acquisition with determination, further reinforcing the positive outlook.

At a special meeting of United States Steel's shareholders on April 12, Nippon Steel's planned acquisition of the company was approved. However, the US government is still conducting antitrust and security reviews, which could prolong the process. The United Steelworkers of America (USW), President Biden's base of support, oppose the takeover plan, especially with the US presidential election in November. It remains to be seen how the review process will unfold.