U.S. Steel Shareholders Approve Acquisition by Japan’s Nippon Steel Amid Political Opposition and Labor Concerns
In a landmark decision, U.S. Steel shareholders have given the green light to Japan’s Nippon Steel proposed $14.9 billion acquisition, with over 98% of votes in favor of the deal. Nippon Steel will pay $55 per share, solidifying its position as the new owner of the American steel giant.
However, the deal has not been without controversy. Political opposition to the acquisition is mounting, with U.S. lawmakers and President Joe Biden expressing concerns about national security implications. The United Steelworkers (USW) labor union has also criticized the deal, fearing potential job losses as a result of the merger.
Regulators such as the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department are closely scrutinizing the deal to ensure compliance with regulations. Despite this, Nippon Steel has pledged not to make any job cuts, to honor agreements between the union and U.S. Steel, and even plans to move its U.S. headquarters to Pittsburgh.
Nippon Steel emerged victorious in the acquisition race, beating out rivals Cleveland-Cliffs, ArcelorMittal, and Nucor for the coveted deal. However, U.S. Steel shares have not reached the offer price of $55, indicating that investors anticipate controversy may cause delays in the closing of the deal.
Originally slated to close in the second or third quarter of this year, Bloomberg News now reports that both companies are expecting the deal to close in the second half of 2024. The acquisition of U.S. Steel by Nippon Steel marks a significant moment in the steel industry, with implications for both the American and global steel markets. Stay tuned for more updates as this story unfolds.
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