Published 16:27 IST, April 13th 2024
US Steel shareholders approve $14.9 billion buyout by Nippon Steel
US Steel said that over 98% of the votes were in favour of the deal under which Nippon will pay $55 per share.
- Republic Business
- 2 min read
Nippon Steel Acquisition: US Steel shareholders have greenlit the proposed $14.9 billion acquisition by Japan's Nippon Steel, moving the merger one step closer to finalisation despite growing political opposition.
The approval, anticipated by many, saw over 98 per cent of shareholders favouring the deal, which entails Nippon Steel paying $55 per share—a substantial premium since the announcement in December.
Yet, political figures, including US lawmakers and President Joe Biden, have expressed reservations, citing national security concerns and advocating for US Steel to remain domestically owned.
Investor sentiment dips
US Steel's stock closed down 2.1 per cent at $41.33 on Friday, indicating investor uncertainty regarding regulatory approval.
The acquisition faces criticism from the United Steelworkers (USW) labor union over potential job losses.
Regulators, including the Committee on Foreign Investment in the United States (CFIUS) and the US Justice Department, are scrutinising the deal for antitrust and national security implications.
Nippon Steel has pledged no job cuts, to honour existing agreements with the union, and to relocate its US headquarters to Pittsburgh.
Confident collaboration ahead
Expressing confidence in the acquisition's benefits for US Steel and the American steel industry, Nippon Steel looks forward to collaboration with US Steel.
The acquisition marks a significant development, with Nippon Steel securing the deal over competitors Cleveland-Cliffs, ArcelorMittal, and Nucor.
The anticipated closing of the deal has been pushed to the second half of 2024, according to Bloomberg News.
(With Reuters Inputs)
Updated 16:27 IST, April 13th 2024