Shareholders of US Steel approve its proposed $14.9 bn acquisition by Japna’s Nippon Steel

Washington: Shareholders of US Steel on Friday approved its proposed $14.9 billion acquisition by Japan’s Nippon Steel as expected, taking the merger one step closer to completion even as political opposition to the deal

mounts.

US Steel said that over 98 per cent of the votes were in favor of the deal under which Nippon will pay $55 per share, an amount that represented a hefty premium when the takeover was announced in December.

Since then, however, several US lawmakers have come out in opposition to the deal, citing national security concerns.

President Joe Biden has said US Steel must remain a domestically owned American company.

US Steel’s shares closed down 2.1 per cent at $41.33 on Friday, well below Nippon Steel’s offer of $55 a share, reflecting uncertainty over whether the deal will secure regulatory approval.

The deal has drawn strong criticism from the United Steelworkers (USW) labor union, which is worried about potential job losses.

“We are not surprised by stockholders electing to cash in and sell out the iconic American company’s employees and retirees,” the USW said in response to the vote.

Regulators are also scrutinizing the deal.

The Committee on Foreign Investment in the United States (CFIUS), a powerful panel that reviews foreign investments in US companies, has met with the parties to discuss the deal, Reuters has reported.

The United States Justice Department has opened an in-depth antitrust investigation into the takeover, Politico reported on Wednesday.

Nippon has pledged no job cuts as a result of the deal, to honor all agreements between the union and US Steel, as well as to move its own US headquarters to Pittsburgh where US Steel is based.

The Japanese steelmaker said in a statement that it is “confident” the acquisition will “protect and grow US Steel and bring significant benefits to its stakeholders ...as well as to the American steel industry and the United States as a whole.”

“We look forward to collaborating closely with US Steel to move forward together as the ‘Best Steelmaker with World-Leading Capabilities,” said Vice Chairman Takahiro Mori.