Steel Shareholders Approve $14.9 Billion Buyout by Nippon Steel
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U.S. Steel Shareholders Approve $14.9 Billion Acquisition by Nippon Steel
In a major development in the steel industry, shareholders of U.S. Steel have approved the proposed $14.9 billion acquisition by Japan’s Nippon Steel. Over 98% of the votes were in favor of the deal, which will see Nippon Steel paying $55 per share, a premium compared to when the takeover was first announced in December.
However, the deal is not without controversy. Political opposition is mounting, with U.S. lawmakers expressing national security concerns and President Joe Biden insisting that U.S. Steel remain domestically owned. The United Steelworkers (USW) labor union has also criticized the deal, citing worries about potential job losses.
Regulators, including the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department, are currently scrutinizing the deal to ensure it complies with all relevant regulations. Nippon Steel has pledged not to make any job cuts as a result of the acquisition and has announced plans to move its U.S. headquarters to Pittsburgh.
While the deal was initially expected to close in the second or third quarter of this year, recent reports indicate a potential delay to the second half of 2024. This extended timeline reflects the complexity and significance of what would be one of the largest acquisitions in the steel industry in recent years.
The outcome of the regulatory scrutiny and ongoing political opposition will ultimately determine the fate of this acquisition, with both sides closely monitoring developments in the coming months. Stay tuned for further updates on this evolving story.
