DOJ opens formal investigation of U.S. Steel takeover by Japanese company

The Justice Department has opened up an in-depth antitrust investigation of Nippon Steel’s $14.1 billion takeover of U.S. Steel, according to two people with direct knowledge of the matter.

The move escalates U.S. government scrutiny of the controversial deal, which has drawn fire from lawmakers, labor unions and others who argue the storied U.S. industrial titan should not be owned by a foreign company — even one based in Japan, one of America’s closest allies. It also follows a preliminary antitrust review previously reported by POLITICO.

Last month President Joe Biden highlighted those concerns in a highly unusual statement, saying it must “remain an American steel company that is domestically owned and operated.”

The United Steelworkers union — whom Biden and presumptive Republican presidential nominee Donald Trump are both courting on the campaign trail — opposes the deal, saying it puts U.S. jobs at risk.It couldn’t be learned exactly when the DOJ officially opened up the in-depth review, but it happened recently according to the people, who are not authorized to speak publicly.A Justice Department spokesperson declined to comment. Spokespeople for Nippon Steel and U.S. Steel did not immediately respond for comment. The opening of the antitrust probe roughly coincides with Japanese Prime Minister Fumio Kishida’s official White House visit this week. The Japanese leader said he hoped the proposed deal would proceed in a positive direction but did not criticize U.S. scrutiny of the transaction.

“Japan believes that appropriate procedures based on law is being implemented by the US government,” Kishida said Wednesday at a joint press conference with Biden.