"US DOJ Launches Antitrust Investigation, Blocks Japan's US Steel Acquisition"

U.S. President Joe Biden reaffirmed opposition to Nippon Steel's acquisition of US Steel during a summit with Japanese Prime Minister Fumio Kishida, amid reports that the U.S. government is investigating potential monopolistic concerns.

[Image source=Reuters Yonhap News]

Political news outlet Politico reported on the 10th (local time), citing multiple sources, that the U.S. Department of Justice has recently launched an in-depth antitrust investigation into Nippon Steel's acquisition of US Steel. This follows a preliminary review by the DOJ last month regarding potential monopolistic issues.

The in-depth investigation typically takes more than six months and can sometimes extend beyond a year. Politico stated, "It is unclear exactly when the in-depth investigation began, but it is recent," adding, "The prolonged investigation will increase uncertainty surrounding Nippon Steel's acquisition of US Steel."

The DOJ's current antitrust investigation is reportedly focused on the electric arc furnace in Calvert, Alabama, operated jointly by Nippon Steel and Luxembourg-based steel company ArcelorMittal. Sources said DOJ attorneys have met with industry stakeholders to inquire how the Nippon Steel-ArcelorMittal electric arc furnace would compete with the merged Nippon Steel-US Steel company.

Politico pointed out that the biggest obstacle to Nippon Steel's acquisition of US Steel is the security review by the Committee on Foreign Investment in the United States (CFIUS), a panel under the Treasury Department. Although the panel mainly focuses on countries like China and Saudi Arabia, concerns have been raised about foreign ownership due to US Steel's critical role in the U.S. industrial base, the outlet reported.

Especially with the U.S. presidential election coming up in November, it is expected that the Nippon Steel-US Steel acquisition will only find resolution after the election. Politicians are mindful of the voting sentiment in the "Rust Belt" regions, such as Pennsylvania, where US Steel's headquarters is located.

President Biden also reaffirmed his opposition to Nippon Steel's acquisition of US Steel during a press conference immediately following the U.S.-Japan summit, stating, "We will keep our promises to American workers." Former President Donald Trump, a Republican and Biden's opponent in the upcoming election, has consistently taken a hardline stance, saying, "It's terrible that US Steel, which we revived, is being sold to Japan," and "We will stop it." Meanwhile, Prime Minister Kishida said at the press conference, "It will be a good discussion for both countries," and "The process will proceed according to the law."

Meanwhile, Bloomberg News, citing sources, reported that the DOJ has extended its investigation to gather more information regarding antitrust concerns. The news agency said the results of CFIUS's security review are expected by the end of this year or early next year. US Steel will hold a special shareholders meeting on the 12th to discuss the agenda related to Nippon Steel's acquisition proposal.

This content was produced with the assistance of AI translation services.