DoJ requests further information about the planned merger from US Steel and Nippon Steel

As part of an antitrust investigation into Nippon Steel’s (5401.T) proposed $15 billion acquisition of U.S. Steel, the U.S. Department of Justice is requesting additional information and supporting documentation, the American company announced on Thursday.

Often referred to as a “second request,” it denotes further examination from antitrust authorities who require more data and supporting documentation as part of their merger evaluation procedure.

The DoJ’s request comes after the Japanese firm’s proposed bid drew sharp criticism in the U.S., including from President Joe Biden, who said the asset should be domestically owned.

However, an overwhelming majority of U.S. Steel shareholders voted in favor of the deal in April.

Despite fears of layoffs, Japan’s largest steelmaker has pledged no job cuts as a result of the merger and has said it will move its own U.S. headquarters to Pittsburgh where U.S. Steel is based.

Nippon, the fourth-largest steel producer in the world, will be able to produce 100 million metric tonnes of crude steel globally with the aid of the acquisition of U.S. Steel.
As its previous target of the second or third quarter of 2024 approaches, U.S. Steel stated on Thursday that it now anticipates the merger to be completed in the second half of 2024.