Nippon Steel has extended the closing date for its $14.9 billion purchase of U.S. Steel to the first quarter of 2025, citing uncertainty over US President Joe Biden’s potential decision on the deal.
The company had initially planned to close the deal in the third or fourth quarter of 2024 but revised it after intense opposition from the United Steelworkers union and politicians. The deal was made last December with a hefty premium, and investors have been concerned about the timeline for its completion.
U.S. Steel shares rose 1.7% before the bell on Wednesday as investors reacted to the news. Japan’s Prime Minister Shigeru Ishiba had urged Biden to approve the merger to avoid damaging bilateral relations.
Despite opposition, U.S. Steel shareholders voted overwhelmingly in April to approve the acquisition. Nippon has promised to move its US headquarters to Pittsburgh and honor agreements with the union. The company is awaiting review from the antitrust division of the US Department of Justice.
Biden has 15 days to decide on the deal, after which it will automatically proceed without his approval. The committee reviewing the deal for security concerns has referred it to Biden, who must use the time to conduct a fair evaluation of the acquisition.
Source: https://www.reuters.com/markets/deals/japans-nippon-steel-revises-closing-date-us-steel-acquisition-2024-12-26