US Steel Stock Climbs to $38.04 in 2025 After European Nod for $14.9B Nippon Steel Deal
European Commission greenlights Nippon Steel's $14.9 billion acquisition of US Steel, while US opposition and antitrust reviews continue.
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Key Highlights
- European Commission approves Nippon Steel's $14.9 billion acquisition of US Steel, easing concerns in the EU market.
- Regulators in Europe found no competition issues arising from the transaction.
- In contrast, US political leaders including President Joe Biden and former President Donald Trump oppose the deal, which is also under scrutiny by US antitrust authorities.
- Following the European approval, US Steel shares rose 4.3% but have declined overall in 2024.
US Steel (NYSE: X) shares surged to $38.04 on Monday, reflecting investor optimism after the European Commission's endorsement of Nippon Steel's $14.9 billion takeover bid.
European Commission Finds No Competition Concerns
The European Commission concluded that the merger would not negatively impact competition within the EU due to the companies' modest market shares post-transaction.
US Opposition and Antitrust Review Delay Closing Timeline
Despite the European approval, the acquisition faces stiff resistance in the United States. President Biden emphasized the importance of keeping US Steel domestically owned, while several lawmakers share similar concerns.
On Friday, Nippon Steel disclosed that the US Department of Justice requested additional documentation as part of its review, pushing the expected deal closure to Q3 or Q4 2024, later than the initially projected Q2 or Q3.
Although US Steel’s shares rose following the European decision, they remain down over 20% year-to-date in 2024.
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