U.S. Steel Shareholders Approve Acquisition by Nippon Steel
Shareholder Approval for Acquisition
U.S. Steel shareholders have given their approval for the proposed $14.9 billion acquisition by Japan’s Nippon Steel. Over 98% of the votes were in favor of the deal, which will see Nippon pay $55 per share, a significant premium compared to when the takeover was initially announced in December.
Political Opposition and Regulatory Scrutiny
Despite shareholder approval, political opposition to the deal is mounting, with concerns raised by U.S. lawmakers, including President Joe Biden, citing national security issues. U.S. Steel’s shares closed lower on Friday amidst uncertainty over regulatory approval.
Concerns from Labor Union and Regulators
The United Steelworkers (USW) labor union has strongly criticized the deal, expressing worries about potential job losses. Regulators, including the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department, are scrutinizing the acquisition.
Nippon Steel’s Commitments
Nippon has pledged not to make any job cuts as a result of the acquisition, to honor existing agreements with the union and U.S. Steel, and to move its U.S. headquarters to Pittsburgh. The Japanese steelmaker is confident the acquisition will benefit all stakeholders and the American steel industry.
Anticipated Timeline for Deal Closure
The deal is expected to close in the second or third quarter of this year, with both companies now aiming for a second-half 2024 completion. Nippon Steel emerged victorious over other competitors in the race for U.S. Steel.
Reaffirming Commitment to Collaboration
Nippon Steel looks forward to collaborating closely with U.S. Steel to enhance their capabilities and become the ‘Best Steelmaker with World-Leading Capabilities.’ The company sees Friday’s shareholder vote as a significant step towards finalizing the acquisition.
Overall, the acquisition process between U.S. Steel and Nippon Steel continues to progress amidst political, regulatory, and labor union challenges, highlighting the complexities involved in such major business deals.
