EU Clears $14.9 Billion Nippon Steel’s Purchase Of U.S. Steel

The European Union has cleared US Steel's $14.9 billion buyout by Japan's Nippon Steel, allaying competition concerns from a deal that has drawn political opposition in the US, Reuters reported.

Nippon in December clinched a deal to buy the 122-year-old iconic steelmaker, prevailing over rival bidders such as Cleveland-Cliffs, ArcelorMittal, and Nucor. I Photo: Nippon Steel

The approval by the European Commission (EC) was expected to be a formality, but in the US, the deal is facing resistance from several lawmakers worried about national security and US Steel's union, which is concerned about job losses.

While U.S. President Joe Biden has said Pennsylvania-based US Steel should remain domestically owned, Republican front-runner for the presidential race, Donald Trump said he would block the deal if elected.

Japan's Nippon has tried to address the concerns by offering to move its US headquarters to Pittsburgh, where US Steel is based, and by promising to honor all agreements in place between US Steel and the United Steelworkers.

Nippon in December clinched a deal to buy the 122-year-old iconic steelmaker, prevailing over rival bidders such as Cleveland-Cliffs, ArcelorMittal, and Nucor. The acquisition of US Steel will help Nippon, the world's fourth-largest steel maker, move toward 100 million metric tons (MMT) of global crude steel capacity.