(Reuters) -The European Commission on Monday approved U.S. Steel’s $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.
U.S. Steel shares rose about 2% before the bell.
The company’s purchase by Nippon was opposed by U.S. President Joe Biden, who wants U.S. Steel to remain domestically owned.
A number of U.S. lawmakers have also come out against the deal, citing national security concerns. But an overwhelming majority of U.S. Steel shareholders voted in favor of the deal in April.
Last week, U.S. Steel said the Department of Justice had sought more details on the proposed merger as part of an antitrust review.
The acquisition of U.S. Steel will help Nippon, the world’s fourth-largest steel maker, move toward 100 million metric tons of global crude steel capacity.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Arun Koyyur)
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