Nippon Steel postpones U.S. Steel acquisition by three months

A worker leaves U.S. Steel Edgar Thomson Steel Works, March 10, 2018 in Braddock, Pennsylvania. (Photo by Drew Angerer/Getty Images)

Nippon Steel said in a statement Friday it is postponing by three months the closing of its planned $14 billion acquisition of Pittsburgh-based U.S. Steel, after each company received requests from the Department of Justice for additional information. 

“Nippon Steel will continue to fully cooperate with the examination of the relevant authorities,” the company’s statement reads.

The deal, announced in December, drew sharp criticism from Pennsylvania lawmakers, including Democratic Sens. Bob Casey and John Fetterman, and U.S. Rep. Chris Deluzio (D-17th District), who asked the Department of Justice to block the sale. The three lawmakers criticized Japan-based Nippon Steel for having facilities in China, which they described as a “foreign adversary of the U.S.” 

Casey, Fetterman and Deluzio along with U.S. Rep. Summer Lee (D-12th District) sent a letter to Nippon Steel demanding answers about their commitment to the residents of Pennsylvania. The White House in December called for “serious scrutiny” of the deal, which is under review by the Committee on Foreign Investment in the United States. 

Former President Donald Trump, the presumptive GOP nominee for president, has also criticized the acquisition, and pledged to block it if he wins another term.

President Joe Biden said in March it was “vital” that the 122-year-old company remain in American hands, a stance he reiterated last month during a visit to the U.S. Steelworkers’ headquarters in Pittsburgh. The union has opposed the acquisition.

U.S. Steel shareholders, however,  voted to approve the deal last month.

The post Nippon Steel postpones U.S. Steel acquisition by three months appeared first on Pennsylvania Capital-Star.