US Steel and Nippon Steel have received approvals from all of the necessary non-US regulatory authorities related to their proposed merger, Kallanish learns.
In a joint release issued by Nippon and US Steel, the leaders of each commend the global authorisations. David Burritt, chief executive officer of US Steel, states that meeting this milestone validates its lawfulness.
“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,” contends Burritt.
The Directorate-General for Competition of the European Commission, pursuant to the EU Merger Regulation and, separately, the Foreign Subsidies Regulation, each gave the green light to the proposed transaction. Mexico’s Federal Economic Competition Commission, the Serbian Competition Commission, the Ministry of Economy of Slovakia, and the Turkish Competition Authority agree that the proposal falls within the respective rules and regulations for each. In response to the voluntary submission of briefing papers, the United Kingdom Competition and Markets Authority confirmed that it had no further questions regarding the proposed transaction.
Takahiro Mori, Nippon Steel’s representative director and vice chairman, underscores the company’s good faith in meeting all regulatory requirements.
“US Steel and Nippon Steel are committed to, as in the months past, continuing to fully cooperate with the examination of the relevant authorities and are determined to complete the transaction,” Mori states.
A source in direct contact with Nippon Steel Corp USA tells Kallanish that a CEO has been selected to lead the company after the merger is completed.
“This deal is happening. Nippon does not send its leadership around the world, taking meetings and reorganising if it isn’t confident it’s a sure thing. They will honour the union obligations until it’s time to renegotiate, then they’ll be a lot more efficient. The ex-ceo of a prominent US steel company will be the new ceo after the merger,” the source says.
According to the latest statement, the two parties expect the deal to be completed midyear, subject to fulfilling closing conditions and receiving US regulatory approvals.
The deal has received pushback from the United Steelworkers union and various politicians from both sides of the political aisle, including US President Joe Biden, who has insisted US Steel must remain domestically owned (see Kallanish passim).
Kristen DiLandro USA
