Nippon pushes closing date of U.S. Steel acquisition to later date

Tokyo-based Nippon Steel postponed its $14.9 billion acquisition of U.S. Steel, which has major operations in Northeast Arkansas. The move comes after federal regulators asked for more information related to the mega-merger that has also played into Presidential politics.

The deal was first announced in December 2023 when Japan’s largest steelmaker said it would pay $55 per share in an all-cash transaction, a 40% premium, for U.S. Steel.

Mississippi County in Northeast Arkansas is the largest steel-producing county in the U.S. It is home to the former Big River Steel project, owned by U.S. Steel. It is also the site of a proposed $3 billion U.S. Steel facility that is expected to come online in 2024.

Nippon pushed the closure date back by approximately three months, indicating the transaction would close in the third or fourth quarter of this year. The boards and shareholders of both companies have approved the takeover.

The U.S. Department of Justice is investigating the deal, which has drawn opposition from the Biden administration, the steelworkers union, and several members of Congress.

“We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonization of steel. NSC has long admired U. S. Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights,” said NSC President Eiji Hashimoto in announcing the deal late last year.

“NSC has a proven track record of acquiring, operating, and investing in steel mill facilities globally – and we are confident that, like our strategy, this combination is truly Best for All,” said U.S. Steel President and Chief Executive Officer of U. S. Steel David Burritt.

“For our U. S. Steel employees, who I continue to be thankful for, the transaction combines like-minded steel companies with an unwavering focus on safety, shared goals, values, and strategies underpinned by rich histories. For customers, U. S. Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs,” Burritt added.