DoJ opens probe into Nippon Steel’s deal for US Steel – Politico (NYSE:X)

The U.S. Department of Justice has opened up an in-depth antitrust investigation of Nippon Steel’s (OTCPK:NISTF) (OTCPK:NPSCY) proposed $14.1B takeover of United States Steel (NYSE:X), Politico reported late Wednesday.

The move escalates U.S. government scrutiny of the deal, which has been criticized by lawmakers, labor unions, and others who argue that the iconic American company should not be owned by a foreign entity, even U.S. ally Japan.

President Biden voiced his opposition to the deal last month and the U.S. Steelworkers union continues to oppose the tie-up; the deal also is under review by CFIUS in the U.S.

The launch of the antitrust probe comes even as Japan Prime Minister Fumio Kishida visits the White House this week; he said he hoped the proposed deal would proceed in a positive direction but did not criticize U.S. scrutiny.

The companies this week submitted the deal for review by European Union antitrust regulators; the EU has a May 17 provisional deadline for a decision.