Nippon Steel has announced its decision to delay the expected closing date for its acquisition of U.S. Steel. This shift in plans came about after the Department of Justice (DOJ) requested for additional information regarding the deal. Initially slated for the second or third quarter of 2024, the closure is now tentatively aimed for the third or fourth quarter.
Nippon made the call to alter the timeline following a DOJ request to revisit the regulatory procedures. This postponement follows the green light from U.S. Steel shareholders for the acquisition, despite pushback from the government, steelworkers and lawmakers.
The recent announcement surfaces about two weeks after President Joe Biden, in a solemn vow to American steelworkers, pledged that U.S. Steel would maintain its American ownership and operation. This declaration unfolded during a speech at the United Steelworkers headquarters in Pittsburgh.
The acquisition, unveiled back in December, has ignited apprehensions among lawmakers regarding national security and the fate of steelworkers' livelihoods. Nonetheless, U.S. Steel contends that the deal will ultimately bolster the company and the domestic steel industry, enhancing their competitiveness.
