Stockholders of Pittsburgh-based U.S. Steel Corp. voted to approve the proposed $14.1 billion merger with Nippon Steel Corp.
However, Nippon changed the estimated closing date of the deal to the third or fourth quarter of the year, because of a “second request” by the U.S. Department of Justice for more information and documentation, according to a company press release.
Nippon cites its long relationship with U.S. companies and that it is “determined to see this through and complete the transaction,” according to a press release.
“This is an important milestone as we progress toward completing the transaction,” said David Burritt, U.S. Steel president and CEO, in a press release. “We are one step closer to bringing together the best of our companies and moving forward together as the ‘Best Steelmaker with World-Leading Capabilities.’”
Burritt highlighted the merger's potential to unite the strengths of both entities, envisioning the emergence of a global powerhouse in steel manufacturing.
“This transaction truly represents the best path forward for all of U. S. Steel’s stakeholders – union and nonunion employees, customers, communities and stockholders – and for the United States and our home in Pennsylvania,” Burritt said. “We will deliver enhanced capabilities and innovations for our customers in the United States and globally, and be able to invest in greener steel to meet our climate commitments.”
U.S. Steel would maintain its name and headquarters in Pennyslvania. Nippon has pledged no job cuts will occur as a result of the deal.
The U.S. Department of Justice is seeking more details as part of an antitrust review of Nippon Steel's proposed acquisition of U.S. Steel.
“U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated,” said President Joe Biden in a March statement.
U.S. Steel has operations across the U.S. and in Central Europe. The steelmaker serves the automotive, construction, appliance, energy, containers and packaging industries. U.S. Steel has an annual raw steelmaking capability of 22.4 million net tons. The company was founded in 1901.
Barclays Capital Inc., Goldman Sachs & Co. LLC and Evercore Inc. are serving as financial advisers to U. S. Steel. Milbank LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisers.
Nippon Steel Corp. is based in Chiyoda-ku, Tokyo. The company has manufacturing bases in Japan and over 15 countries worldwide. The Nippon Steel Group does business in steelmaking, steel fabrication, engineering, construction, chemicals and materials. The company was formed in 1970.
– Heather Pfundstein, executive editor, contributed to this report.
