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The U.S. Department of Justice has launched an in-depth antitrust investigation into Nippon Steel’s (OTCPK:NISTF) (OTCPK:NPSCY) proposed $14.1 billion acquisition of United States Steel (NYSE:X), Politic reported Wednesday evening.
The move intensifies U.S. government scrutiny of the deal, which has been criticized from lawmakers, unions and others who argue that the iconic American company should not be owned by a foreign entity, even by U.S. ally Japan.
President Biden expressed his opposition to the deal last month, and the U.S. Steelworkers union continues to oppose the deal; the agreement is also being studied by CFIUS in the United States
The launch of the antitrust investigation comes just as Japanese 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. oversight.
The companies this week submitted the deal for review by European Union antitrust regulators; the EU has a provisional deadline to make a decision of May 17.