((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Corrects to indicate that second request means further review by competition regulators in paragraph 2)
The US Department of Justice is requesting more details and documents as part of a competitive review of Nippon Steel 5401.T’s proposed $15 billion takeover of US Steel, the US company said on Thursday. .
Commonly referred to as a “second request”, it means further review by competition regulators who request additional information and documents as part of their merger review process.
The DoJ’s request comes after the Japanese company’s proposed bid drew sharp criticism in the United States, including from President Joe Biden, who said the asset should be owned by the country.
However, an overwhelming majority of US Steel shareholders voted in favor of the deal in April.
Despite fears of layoffs, Japan’s largest steelmaker pledged not to cut jobs as a result of the merger and said it would move its own U.S. headquarters to Pittsburgh, where US Steel is based.
The acquisition of US Steel will help Nippon, the world’s fourth-largest steelmaker, achieve a production capacity of 100 million tonnes of crude steel worldwide.
US Steel now expects the merger to be completed in the second half of 2024, the company said Thursday, as the previous deadline of the second or third quarter of 2024 looms closer.
