Brussels, May 6 (EFECOM).- The European Commission this Monday gave the green light to the acquisition of the American steel producer US Steel by its Japanese competitor Nippon Steel, as reported by the institution in a statement.
Brussels considered, specifically, that the transaction does not raise competition problems “given the limited market positions that will result from the proposed transaction.”
The Competition Department of the Community Executive examined the acquisition following the simplified merger and concentration control procedure, which is used in the least problematic cases.
Nippon Steel announced in December the purchase of US Steel in a $14.1 billion (€12.972 million) deal that will combine two steel giants in the United States and Japan.
The deal values Pittsburgh-based US Steel at $55 per share, a 40% premium to the company’s stock price at market close on Friday before the deal was announced. According to the agreement announced then, the American firm will maintain “its iconic name”, its brand and its headquarters in Pittsburgh.
The combination will make the Japanese company the world’s second-largest steel producer, behind China Baowu Steel Group, according to figures from the World Steel Association. EFECOM
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