U.S. Steel Shareholders Approve Nippon Steel Acquisition, Despite Political Opposition
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 political opposition and regulatory scrutiny.
Over 98% of shareholders voted in favor of the deal, under which Nippon will pay $55 per share. This represents a significant premium compared to the price when the takeover was announced in December.
Despite the shareholder approval, several U.S. lawmakers have expressed concerns about the deal, citing national security risks. President Joe Biden has also stated that U.S. Steel should remain a domestically owned American company.
The deal has also drawn criticism from the United Steelworkers (USW) labor union, which is worried about potential job losses. The union expressed disappointment with the shareholders' decision, stating that they are "cashing in and selling out the iconic American company's employees and retirees."
Regulators are also scrutinizing the deal. The Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department have both launched investigations into the takeover.
Nippon Steel has pledged to maintain all agreements between the union and U.S. Steel, and to move its own U.S. headquarters to Pittsburgh. However, the deal is expected to face further delays due to the ongoing controversy.
Bloomberg News reports that both companies now anticipate the deal to close in the second half of 2024, rather than the previously expected second or third quarter of 2023.