According to Reuters’ report on Friday, US Steel shareholders have overwhelmingly voted in favor of the proposed $14.9 billion acquisition by Nippon Steel of Japan, with over 98% of votes supporting the deal. Under the terms, Nippon Steel will acquire each share for $55.
However, the acquisition faces significant opposition on various fronts. Concerns over national security have been raised by US lawmakers, including President Biden, who has advocated for US Steel to remain under American ownership. The United Steelworkers union has also expressed apprehension regarding potential job cuts resulting from the acquisition.
The deal is further complicated by regulatory hurdles. The Committee on Foreign Investment in the United States (CFIUS), tasked with reviewing foreign investments, has engaged with the involved parties. Additionally, the Justice Department has initiated an investigation into potential antitrust issues surrounding the acquisition.
Despite these challenges, Nippon Steel has pledged to preserve jobs, uphold existing union agreements, and even relocate its US headquarters to Pittsburgh, where US Steel is headquartered. Nippon emerged victorious in its bid for US Steel, surpassing competitors such as Cleveland-Cliffs, ArcelorMittal, and Nucor.
