U.S. Steel Shareholders Approve $14.1 Billion Takeover by Nippon Steel
In a historic move, U.S. Steel shareholders have voted to approve the controversial $14.1 billion merger with Japanese-owned Nippon Steel. Over 98% of shares were cast in favor of the takeover at the meeting, representing a significant portion of the company’s outstanding stock.
U.S. Steel President and CEO, David Burritt, expressed his gratitude for the overwhelming support from shareholders and believes that the merger will make the company stronger and more competitive in the global market. Nippon Steel’s Vice Chairman, Takahiro Mori, thanked U.S. Steel shareholders for their support and emphasized the goal of protecting and growing U.S. Steel in the American market.
While shareholder approval was expected, the merger still needs to be cleared by the Justice Department and the Committee on Foreign Investment in the United States (CFIUS). The deal faces political scrutiny, as concerns about national security and the impact on steel jobs have been raised by President Biden, presumptive Republican presidential nominee Donald Trump, and various lawmakers.
The United Steelworkers Union and some lawmakers have also expressed opposition to the merger, citing worries about job security and the effects on American workers. Japanese Prime Minister Fumio Kishida has expressed optimism that the deal will proceed positively, while Biden has reiterated his commitment to American workers and alliances.
Several lawmakers, including Sens. John Fetterman, Bob Casey, Sherrod Brown, Josh Hawley, JD Vance, and Marco Rubio, have criticized the merger on various grounds, such as worker protections and national security concerns. Vance has called on U.S. Steel to accurately convey the risks of the merger to shareholders and urged the Securities and Exchange Commission to review the proxy statement for compliance with federal securities laws.
Experts believe that the merger could benefit Americans by ensuring competition in the steel industry and keeping domestic prices in check. With this approval from shareholders, the future of U.S. Steel under Nippon Steel’s ownership remains uncertain as it awaits regulatory approval and navigates political and public criticisms. Stay tuned to Poh Diaries for more updates on this developing story.
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