U.S. Steel shareholders approve $14.9 billion buyout by Nippon Steel
WASHINGTON, D.C.: On April 13, U.S. Steel shareholders voted in favor of the company’s proposed US$14.9 billion acquisition by Japan’s Nippon Steel, a move anticipated to bring the merger one step closer to completion despite mounting political opposition. Over 98 percent of the votes cast supported the deal, in which Nippon Steel will pay $55 per share, a premium compared to U.S. Steel’s closing stock price of $41.33 on April 13. However, political concerns have emerged, with several U.S. lawmakers expressing opposition on national security grounds. President Joe Biden has emphasized the importance of U.S. Steel remaining domestically owned. The acquisition has faced criticism from the United Steelworkers (USW) labor union, citing worries about potential job losses. We are not surprised by stockholders electing to cash in and sell out the iconic American company’s employees and retirees," the USW said in response to the vote. Regulatory scrutiny has intensified, with the Committee on Foreign Investment in the United States meeting with the parties involved and the U.S. Justice Department launching an antitrust investigation. Nippon Steel has committed to preserving jobs, honoring existing agreements with the union, and relocating its U.S. headquarters to Pittsburgh, where U.S. Steel is headquartered. The Japanese steelmaker expressed confidence that the acquisition would benefit U.S. Steel, the American steel industry, and the United States. "We look forward to collaborating closely with U.S. Steel to move forward as the ‘Best Steelmaker with World-Leading Capabilities,’" said Vice Chairman Takahiro Mori. Friday’s vote "represents a major step," the company said. Despite the hurdles, the vote marks a significant milestone for the deal. Nippon Steel emerged victorious over rivals Cleveland-Cliffs, ArcelorMittal, and Nucor. According to Bloomberg News, the acquisition is expected to close in the second or third quarter of this year, with both companies now anticipating the deal to be finalized in the latter half of 2024.