The European Commission on Monday (May 6) approved US Steel’s US$14.9 billion buyout by Japan’s Nippon Steel, saying the deal does not raise competition concerns despite the political opposition that it faces in the United States.
US Steel shares rose about 2 per cent before the bell.
The company’s purchase by Nippon was opposed by US President Joe Biden, who wants US Steel to remain domestically owned.
A number of US lawmakers have also come out against the deal, citing national security concerns. But an overwhelming majority of US Steel shareholders voted in favor of the deal in April.
Last week, US Steel said the Department of Justice had sought more details on the proposed merger as part of an antitrust review.
The acquisition of US Steel will help Nippon, the world’s fourth-largest steel maker, move toward 100 million metric tons of global crude steel capacity.
