(Reuters) -The European Commission on Monday approved U.S. Steel’s $14.9 billion buyout by Japan’s Nippon Steel, allaying competition worries, even as the deal faces regulatory scrutiny and political opposition in the U.S.
The deal, however, has been opposed by several U.S. lawmakers on national security grounds. It faces scrutiny from antitrust regulators and has drawn criticism from the powerful United Steelworkers union.
Here’s a timeline of recent events leading up to the deal between Japan’s largest steelmaker and the company whose steel was used to build iconic structures such as the United Nations building in New York City and the New Orleans Superdome.
DATE DEVELOPMENT
Aug. 13, U.S. Steel announces its aim to explore
2023 strategic options after receiving
unsolicited bids, ranging from the
acquisition of certain production assets to
consideration for the entire company
Aug. 13, U.S. Steel rejects a $7.3-billion offer from
2023 Cleveland-Cliffs, leading to the start of a
formal review of its strategic options
Aug. 14, The United Steelworkers (USW) union supports
2023 Cleveland-Cliffs’ bid to acquire U.S. Steel,
saying the company is the best strategic
buyer
Aug. 14, Shares of U.S. Steel rise after privately
2023 held firm Esmark makes a $7.8-billion
all-cash offer for the company
Aug. 16, ArcelorMittal, the world’s second-largest
2023 steelmaker, considers a potential offer for
U.S. Steel, Reuters reports
Aug. 17, U.S. Senator J.D. Vance asks U.S. Steel to
2023 rule out a foreign buyer for the company
Aug. 17, U.S. Steel states that its labor agreement
2023 with USW does not grant the union the right
to veto a potential sale of the company
Aug. 22, Cleveland-Cliffs demands U.S. Steel reveal
2023 all buyout offers it has received
Aug. 23, Esmark withdraws its bid for U.S. Steel,
2023 respecting the position of the USW union,
which supports Cleveland-Cliffs’ offer
Aug. 29, U.S. Steel begins the due-diligence process
2023 after entering agreements with numerous
third parties
Sept. 20, U.S. Steel and Cleveland-Cliffs clash over a
2023 confidentiality pact
Sept. 21, Canada’s Stelco Holdings considers a bid for
2023 U.S. Steel, Bloomberg news reports
Sept. 28, U.S. Steel allows Cleveland-Cliffs to
2023 participate in its sale process
Oct. 31, Major automakers oppose Cleveland-Cliffs’
2023 proposed acquisition of U.S. Steel, citing
potential cost increases and a slowdown in
electric-vehicle sales
Dec. 18, Japan’s Nippon Steel announces its plan to
2023 buy U.S. Steel in a deal valued at $14.9
billion
Dec. 19, Three U.S. Republican senators urged
2023 Treasury Secretary Janet Yellen to block the
deal for U.S. Steel by Nippon Steel, citing
national security concerns.
Dec. 20, Brian Deese, a key player in President Joe
2023 Biden’s 2024 re-election bid, said Nippon’s
proposed purchase of U.S. Steel was
concerning and that the administration
should look closely at it.
Dec. 21, The White House said Nippon Steel’s proposed
2023 acquisition of U.S. Steel deserves “serious
scrutiny,” given the company’s core role in
U.S. steel production that is critical to
national security.
Dec. 22, Japanese Industry Minister Ken Saito said
2023 that U.S.-Japanese ties were “stronger than
ever,” although he declined to comment
directly on growing scrutiny in the United
States of a proposed deal for Nippon Steel
to buy U.S. Steel.
Jan. 05, Nippon Steel was confident of successfully
2024 completing its planned acquisition of U.S.
Steel, despite opposition from labor union
and certain U.S. senators, its president
said.
Jan. 12, Nippon Steel said President Eiji Hashimoto
2024 would become CEO and chairman effective
April 1, remaining at the helm as the top
Japanese steelmaker aims to complete a deal
to take over U.S. Steel
Jan. 24, Nippon Steel Executive Vice President
2024 Takahiro Mori met U.S. Congress members to
discuss acquisition of U.S. Steel, as it
faced strong resistance to the deal.
Jan. 30, Sumitomo Mitsui Financial Group, Mitsubishi
2024 UFJ Financial Group and Mizuho Financial
Group planned to lend Nippon Steel a
combined $16 billion for its planned
acquisition of U.S. Steel.
Feb. 07, Nippon Steel said it was on track to
2024 finalize its planned acquisition of U.S.
Steel by the end of September as it stepped
up talks with key stakeholders, particularly
labor unions.
March 04, A senior Nippon Steel executive told Reuters
2024 he was set to meet the United Steelworkers
union chief to seek support for acquiring
U.S. Steel.
March 13, President Joe Biden planned to express
2024 concern over Nippon Steel’s proposed
purchase of U.S. Steel, pushing the U.S.
company’s stock nearly 13% lower on bets the
deal could face greater political
opposition.
April 10, The U.S. Department of Justice opened an
2024 in-depth antitrust investigation into Nippon
Steel’s takeover of U.S. Steel.
April 12, U.S. Steel shareholders voted to approve the
2024 acquisition, taking the merger one step
closer to completion even as political
opposition to the deal mounts.
April 17, President Joe Biden said at an event in
2024 Pittsburgh that the U.S. Steel should stay a
U.S.-owned company.
May 2, 2024 The U.S. Department of Justice sent a
“second request” to U.S. Steel, seeking more
details and documentary materials as part of
an antitrust review of the deal.
May 6, 2024 The European Commission approved U.S.
Steel’s $14.9 billion buyout saying that the
deal does not raise competition concerns.
Sources: Reuters reports, company records
(Reporting by Abhinav Parmar, Shivansh Tiwary, Kannaki Deka and Aatreyee Dasgupta, Pratyush Thakur; Editing by Anil D’Silva, Maju Samuel and Arun Koyyur)
