U.S. Steel shareholders have approved the proposed $14.9 billion acquisition by Japan's Nippon Steel. The deal is expected to close in the second half of 2024.
Over 98% of the votes were in favor of the deal, under which Nippon will pay $55 per share. This represents a hefty premium when the takeover was announced in December.
However, several U.S. lawmakers have come out in opposition to the deal, citing national security concerns. President Joe Biden has said U.S. Steel must remain a domestically owned American firm.
The deal has also drawn strong criticism from the United Steelworkers (USW) labor union, which is worried about potential job losses.
Regulators are also scrutinizing the deal. The Committee on Foreign Investment in the United States (CFIUS) has met with the parties to discuss the deal.
The U.S. Justice Department has opened an in-depth antitrust investigation into the takeover.
Nippon has pledged no job cuts as a result of the deal, to honor all agreements between the union and U.S. Steel, and to move its own U.S. headquarters to Pittsburgh where U.S. Steel is based.
The Japanese steelmaker won the race for U.S. Steel over rivals Cleveland-Cliffs, ArcelorMittal, and Nucor.
However, U.S. Steel shares have not hit the offer price of $55, signaling that investors expect the controversy around the deal to delay its closing.