Key Takeaways
- European regulators on Monday gave their approval of Nippon Steel’s $14.9 billion purchase of U.S. Steel.
- European officials said the acquisition wouldn’t raise competition concerns in their region.
- The situation is different in the U.S., where President Joe Biden, former President Donald Trump, and several lawmakers have spoken out against the Japanese steel company’s acquisition, which is also being probed by U.S. antitrust regulators.
- U.S. Steel shares gained Monday after the European Commission’s announcement but remain lower so far in 2024.
U.S. Steel (X) shares finished 4.3% higher at $38.04 Monday after European regulators gave their approval of Nippon Steel’s $14.9 billion purchase of the American steelmaker.
EC Says Deal Does Not Raise Competition Concerns
The European Commission (EC) said Monday it concluded that in the European Union, the merger “would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction.”
However, Deal Still Faces Opposition in US
The decision by the commission was expected, but the deal still faces opposition in the U.S. Some lawmakers, as well as President Joe Biden and former President Donald Trump, have spoken out against it. President Biden argued that it’s “vital” for U.S. Steel to remain domestically owned and operated.
On Friday, Nippon Steel said that the U.S. Department of Justice (DOJ) had requested additional materials from both companies as part of its review of the acquisition. Because of that, the Japanese company said it now expects the transaction to close in the third or fourth quarter, instead of its previous estimate of the second or third quarter.
Even with Monday’s gains, shares of U.S. Steel have lost more than one-fifth of their value in 2024.