(Reuters) – The U.S. Justice Department is seeking more details and documentary material as part of an antitrust investigation into Nippon Steel’s proposed $15 billion takeover of US Steel, the U.S. company said on Thursday.
Commonly known as a “second request,” this means additional scrutiny from antitrust regulators requesting additional information and documentary materials as part of their merger review process.
The DoJ’s request comes after the Japanese company’s proposed bid drew sharp criticism in the US, including from President Joe Biden, who said ownership should be in his own hands.
However, an overwhelming majority of US Steel shareholders voted in favor of the deal in April.
Despite fears of layoffs, Japan’s largest steelmaker has pledged that there will be no job cuts as a result of the merger and that it will move its own U.S. headquarters to Pittsburgh, where US Steel is based.
The acquisition of US Steel will help Nippon, the world’s fourth largest steel producer, move towards a global crude steel capacity of 100 million tonnes.
US Steel now expects the merger to close in the second half of 2024, it said Thursday, as it approaches its previous deadline of the second to third quarters of 2024.
(This story has been corrected to say that the second request means additional investigation from antitrust regulators in paragraph 2)
