Pittsburgh, April 13, 2024 – Shareholders of American steelmaker U.S. Steel on Friday approved its takeover by Japanese conglomerate Nippon Steel for $14.9 billion. The merger, which would make Nippon Steel one of the world’s largest steel producers, is now one step closer to completion.
The shareholder vote was overwhelmingly in favor of the deal, with more than 98% of shareholders voting to approve it. Nippon Steel is offering $55 per share for U.S. Steel, a 40% premium over the price before the acquisition was announced in December 2023.
Despite shareholder approval, the deal faces growing obstacles. Several U.S. lawmakers and President Joe Biden have expressed national security concerns and have called for U.S. Steel to remain an American company. The United Steelworkers (USW) union has also criticized the deal over concerns about job losses.
Regulatory agencies in the U.S., including the Committee on Foreign Investment in the United States (CFIUS) and the Department of Justice, are reviewing the deal. CFIUS has already met with the parties to discuss the details of the acquisition, while the Justice Department has launched an in-depth antitrust investigation into the takeover, according to Politico.
In an effort to alleviate concerns, Nippon Steel has pledged to preserve jobs at U.S. Steel, honor union agreements, and move its U.S. headquarters to Pittsburgh, where U.S. Steel is based.
The future of the acquisition is uncertain and depends on approval from regulators and political pressure in the U.S. The fate of U.S. Steel and its employees is also the subject of much discussion and uncertainty.
