U.S. Steel Shareholders Approve $14.9 Billion Acquisition by Nippon Steel Amid Political Opposition
In a significant development, U.S. Steel shareholders have given their approval for the proposed $14.9 billion acquisition by Japan’s Nippon Steel. The merger, which has been in the works since December, took a step closer to completion as over 98 percent of the votes were in favor of the deal.
Under the terms of the acquisition, Nippon Steel will pay $55 per share, a substantial premium from the initial announcement. However, the deal has faced political opposition, with U.S. lawmakers expressing concerns about national security implications. President Joe Biden has emphasized the importance of U.S. Steel remaining under American ownership.
Despite the shareholder approval, U.S. Steel’s shares closed down 2.1% on Friday, reflecting investor uncertainty surrounding the deal. The United Steelworkers (USW) labor union has also criticized the acquisition, fearing potential job losses.
Regulators, including the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department, are closely monitoring the deal. Nippon Steel has assured no job cuts as a result of the acquisition and has pledged to uphold existing agreements with the union.
While Nippon Steel emerged victorious in the bidding war against competitors like Cleveland-Cliffs, ArcelorMittal, and Nucor, the controversy surrounding the deal has led to delays in its closing. The companies now anticipate the acquisition to be finalized in the second half of 2024, according to Bloomberg News.
Despite the challenges and opposition, both U.S. Steel and Nippon Steel remain committed to completing the acquisition, which is expected to reshape the global steel industry.