U.S. Steel Shareholders Approve Nippon Steel Acquisition, But Concerns Remain
U.S. Steel shareholders have approved the proposed $14.9 billion acquisition by Japan's Nippon Steel, taking the merger one step closer to completion. However, the deal faces opposition from U.S. lawmakers, the United Steelworkers union, and regulators.
Shareholders overwhelmingly voted in favor of the deal, with over 98% approving the $55 per share offer. However, several U.S. lawmakers have expressed concerns about national security and have urged President Biden to block the deal. The United Steelworkers union is also worried about potential job losses.
Regulators are also scrutinizing the deal. The Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department are investigating the deal for potential national security and antitrust concerns.
Nippon Steel has pledged no job cuts and to honor all agreements between the union and U.S. Steel. The Japanese steelmaker also plans to move its U.S. headquarters to Pittsburgh.
Despite the shareholder approval, the deal is not expected to close until the second half of 2024 due to ongoing regulatory scrutiny and political opposition.