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The U.S. Division of Justice has opened up an in-depth antitrust investigation of Nippon Metal’s (OTCPK:NISTF) (OTCPK:NPSCY) proposed $14.1B takeover of United States Metal (NYSE:X), Politico reported late Wednesday.
The transfer escalates U.S. authorities scrutiny of the deal, which has been criticized by lawmakers, labor unions, and others who argue that the long-lasting American firm shouldn’t be owned by a overseas entity, even U.S. ally Japan.
President Biden voiced his opposition to the deal final month and the U.S. Steelworkers union continues to oppose the tie-up; the deal is also below assessment by CFIUS within the U.S.
The launch of the antitrust probe comes at the same time as Japan Prime Minister Fumio Kishida visits the White Home this week; he stated he hoped the proposed deal would proceed in a optimistic course however didn’t criticize U.S. scrutiny.
The businesses this week submitted the deal for assessment by European Union antitrust regulators; the EU has a Might 17 provisional deadline for a call.
