Nippon Steel clears international merger hurdles

United States Steel Corp. and Japan-based Nippon Steel Corp. (NSC) report that the proposed merger of the of the two companies has received all regulatory approvals outside the United States.

That list of approvals includes those from 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.

In addition, the United Kingdom Competition and Markets Authority confirmed it had no further questions regarding the proposed transaction in response to the submission of a voluntary briefing paper, according to U.S. Steel and NSC.

“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 President and CEO David B. Burritt says.

“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."

In the U.S., several politicians, including both likely large party nominees in the upcoming presidential election, have expressed opposition to the deal. The reasons include job protection and, in some cases, national security.

In April, holders of 71 percent of the outstanding shares of U.S. Steel common stock voted in favor of the proposed transaction, or 99 percent of shareholders who cast a vote.

Despite the expressed opposition in the U.S., both companies say they expect the transaction will be completed in the second half of this year, subject to the fulfillment of the remaining, customary closing conditions, including the receipt of required U.S. regulatory approvals.

“We appreciate this significant milestone of receiving regulatory approvals necessary to consummate the transaction from all non-U.S. authorities. Our goal for this transaction has been clear and consistent—to protect and grow U. S. Steel," says Takahiro Mori, vice chair of the board of NSC.