Mexico is expected to renew its antitrust approval for Nippon Steel’s proposed acquisition of U.S. Steel as early as Thursday, according to sources familiar with the matter. The renewed clearance would mark a key step forward for the $14.9 billion deal, which has faced global regulatory scrutiny since its announcement in late 2023.

Mexico’s Federal Economic Competition Commission (COFECE) had initially approved the deal but is now conducting a reassessment following concerns raised by stakeholders, including labor unions and North American trade groups. The renewed approval is anticipated to include updated conditions ensuring fair market practices and minimal impact on competition within the Mexican steel industry.

Nippon Steel, Japan’s largest steelmaker, aims to expand its global footprint through this acquisition, targeting U.S. Steel’s assets and operations, including facilities in the U.S., Mexico, and Central Europe. The deal also aligns with its long-term strategy to increase production capacity outside Japan and respond to rising demand in North America.

The U.S. government has taken a cautious approach to the deal, with President Biden earlier stating that American steel should remain domestically owned. However, the companies involved continue to express confidence in receiving all necessary approvals, emphasizing that the merger would strengthen supply chains, preserve jobs, and enhance technological capabilities. With Mexico likely to give a green light again, the acquisition moves one step closer to completion—pending final decisions in the United States and other jurisdictions.