U.S. Steel’s proposed $14.9 billion merger with Nippon Steel

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(Corrects to add Timeline tag in headline, change dateline to Sept 5 from May 30)

(Reuters) -The White House is set to announce that President Joe Biden will block Nippon Steel’s < 5401.T> $14.9 billion bid for the U.S. Steel citing national security concerns, two sources familiar with the situation told Reuters.

Nippon Steel agreed to acquire U.S. Steel last year, but has faced resistance since then from both an assertive labor union and the White House.

Here’s a timeline of events leading up to the deal between the two steelmakers and the growing bipartisan political opposition:

DATE DEVELOPMENT

Aug. 13, U.S. Steel announces aim to explore options

2023 after receiving unsolicited bids, ranging

from the acquisition of certain production

assets to consideration for the company

Aug. 13, U.S. Steel rejects a $7.3-billion offer from

2023 Cleveland-Cliffs, leading to the start of a

formal review of its strategic options

Aug. 14, The United Steelworkers union supports

2023 Cleveland-Cliffs’ bid to acquire U.S. Steel,

saying the company is the best buyer

Aug. 14, Shares of U.S. Steel rise after privately

2023 held firm Esmark makes a $7.8-billion

all-cash offer for the company

Aug. 16, ArcelorMittal, the world’s second-largest

2023 steelmaker, considers a potential offer for

U.S. Steel, Reuters reports

Aug. 17, U.S. Senator J.D. Vance asks U.S. Steel to

2023 rule out a foreign buyer for the company

Aug. 17, U.S. Steel says its labor agreement with USW

2023 does not grant the union the right to veto a

potential sale of the company

Aug. 22, Cleveland-Cliffs demands U.S. Steel reveal

2023 all buyout offers it has received

Aug. 23, Esmark withdraws its bid for U.S. Steel,

2023 respecting the position of the USW union,

which supports Cleveland-Cliffs’ offer

Aug. 29, U.S. Steel begins due-diligence after

2023 entering agreements with numerous third

parties

Sept. 20, U.S. Steel and Cleveland-Cliffs clash over a

2023 confidentiality pact

Sept. 21, Canada’s Stelco Holdings considers a bid for

2023 U.S. Steel, Bloomberg news reports

Sept. 28, U.S. Steel allows Cleveland-Cliffs to

2023 participate in its sale process

Oct. 31, Major automakers oppose Cleveland-Cliffs’

2023 proposed acquisition, citing potential cost

increases and a slowdown in electric-vehicle

sales

Dec. 18, Japan’s Nippon Steel announces its plan to

2023 buy U.S. Steel in a deal valued at $14.9

billion

Dec. 19, Three U.S. Republican senators urged

2023 Treasury Secretary Janet Yellen to block the

deal by Nippon Steel, citing national

security concerns.

Dec. 20, Brian Deese, a key player in President Joe

2023 Biden’s 2024 re-election bid, says Nippon’s

proposed purchase was concerning and the

administration should look closely at it.

Dec. 21, The White House said Nippon Steel’s proposed

2023 acquisition of U.S. Steel deserves “serious

scrutiny”, given its core role in U.S. steel

production that is critical to national

security.

Dec. 22, Japanese Industry Minister Ken Saito

2023 saysU.S.-Japanese ties were “stronger than

ever,” although he declined to comment

directly on growing U.S. scrutiny of a

proposed deal.

Jan. 05, Nippon Steel was confident of completing its

2024 planned acquisition of U.S. Steel, despite

opposition from labor union and certain U.S.

senators, its president said.

Jan. 12, Nippon Steel said President Eiji Hashimoto

2024 would become CEO and chairman from April 1,

remaining at the helm as the top Japanese

steelmaker aims to complete the deal

Jan. 24, Nippon Steel Executive Vice President

2024 Takahiro Mori met U.S. Congress members to

discuss acquisition of U.S. Steel, as it

faced strong resistance.

Jan. 30, Sumitomo Mitsui Financial Group, Mitsubishi

2024 UFJ Financial Group and Mizuho Financial

Group plans to lend Nippon Steel a combined

$16 billion for its acquisition of U.S.

Steel.

Feb. 07, Nippon Steel says it was on track to

2024 finalize its acquisition of U.S. Steel by

September end as it stepped up talks with

key stakeholders, particularly labor unions.

March 04, A senior Nippon Steel executive told Reuters

2024 he was set to meet the United Steelworkers

union chief to seek support for acquiring

U.S. Steel.

March 13, President Joe Biden plans to express concern

2024 over Nippon Steel’s proposed purchase of

U.S. Steel, pushing the U.S. company’s stock

nearly 13% lower on bets the deal could face

political opposition.

April 10, The U.S. Department of Justice opens an

2024 in-depth antitrust investigation into Nippon

Steel’s takeover of U.S. Steel.

April 12, U.S. Steel shareholders vote to approve the

2024 acquisition, taking the merger one step

closer to completion even as political

opposition rise.

April 17, President Joe Biden says at an event in

2024 Pittsburgh that the U.S. Steel should stay a

U.S.-owned company.

May 2, 2024 The U.S. Department of Justice sent a

“second request” to U.S. Steel, seeking more

details and documentary materials as part of

an antitrust review.

May 6, 2024 The European Commission approves U.S.

Steel’s $14.9 billion buyout saying the deal

does not raise competition concerns.

Both U.S. Steel and Nippon Steel say they

May 30, 2024 had received all regulatory approvals

outside the U.S. for their proposed merger

July 20, Nippon Steel

2024 hires

former U.S. Secretary of State

Mike Pompeo to help with its effort to

acquire U.S. Steel

Nippon Steel says it plans to

Aug. 29, invest about $1.3 billion more in U.S.

2024 Steel’s two mills as part of the pending

acquisition

Democratic presidential

Sept. 2, candidate Kamala Harris says U.S. Steel

2024 should remain in domestic hands

The White House is close to

Sept. 4, announcing President Joe Biden will block

2024 Nippon Steel’s acquisition of U.S. Steel

citing national security concerns, two

sources familiar with the situation told

Reuters

Sources: Reuters reports, company records

(Reporting by Abhinav Parmar, Shivansh Tiwary, Kannaki Deka and Aatreyee Dasgupta, Pratyush Thakur; Editing by Arun Koyyur and Devika Syamnath)

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