U.S. Steel Shareholders Approve $14.9 Billion Acquisition by Japan’s Nippon Steel Despite Opposition
In a surprising turn of events, U.S. Steel shareholders have approved a $14.9 billion acquisition by Japan’s Nippon Steel, despite opposition from the Biden administration, steelworkers, and congressional lawmakers. The proposed deal, announced in December, has faced pushback from lawmakers in both parties who argue that it could threaten national security, U.S. industrial capacity, and the livelihoods of steelworkers.
Sen. John Fetterman (D-Pa.) emphasized the importance of steel to national and economic security, stating, “This conversation should be about the steelworkers who power U.S. Steel.” Republican Senators J.D. Vance, Marco Rubio, and Josh Hawley called for the Committee on Foreign Investment in the United States (CFIUS) to block the sale, citing concerns about the foreign allegiances of Nippon Steel.
President Biden also expressed his disapproval of the deal, emphasizing the need to maintain strong American steel companies powered by American workers. Despite these objections, U.S. Steel maintained that the acquisition represents the best path forward for all stakeholders and will make the domestic steel industry stronger and more competitive.
David McCall, United Steelworkers (USW) union international president, raised concerns about the potential impact of the deal on steelworkers’ livelihoods and national security. However, U.S. Steel announced that 98% of shareholders voted to approve the merger, signaling a significant step forward in the acquisition process.
The vote comes on the heels of Japanese Prime Minister Fumio Kishida’s State visit, during which he addressed a joint meeting of Congress and held talks with President Biden. Despite the controversy surrounding the acquisition, U.S. Steel remains optimistic about the future of the company under Nippon Steel’s ownership.