Communication Tower Manufacturer

Industry News

Home News Center Industry News

U.S. Steel Shareholders Approve Sale of Company to Nippon Steel

U.S. Steel Shareholders Approve Sale of Company to Nippon Steel
April 17, 2024

U.S. Steel shareholders approved the sale of the company to Nippon Steel. About 71% of U.S. Steel shareholders voted in favor at the special meeting, but opposition from unions and ongoing regulatory scrutiny have cast doubt on the $14.1 billion deal. 

U.S. Steel shareholders approved the deal amid widespread expectations. Under the terms of the deal, Nippon Steel will pay $55 per share, a price that was seen as a huge premium when the takeover was announced in December. However, some U.S. lawmakers have since publicly expressed opposition to the deal, citing national security concerns. U.S. President Joe Biden also said that U.S. Steel must remain an American company. Affected by the transaction, U.S. Steel's stock price closed down 2.1% on Friday. 

At the same time, the deal has also triggered strong criticism from the United Steelworkers (USW), who are worried that it may cause workers to lose their jobs. In response to the vote, USW said: "We are not surprised that shareholders have chosen to cash out and sell employees and retirees of this iconic American company." 

In addition, regulatory agencies are also reviewing the transaction. According to Reuters, the Committee on Foreign Investment in the United States (CFIUS), the agency responsible for reviewing foreign investments in U.S. companies, has met with all parties to discuss the matter. 

iron and steel structure

On the other hand, according to Politico, the U.S. Department of Justice has launched an in-depth antitrust investigation into the acquisition. 

Nippon Steel has promised not to lay off workers due to the agreement, will abide by all agreements with the U.S. Steel union, and plans to move its U.S. headquarters to Pittsburgh, where U.S. Steel is located. In this bid, Nippon Steel defeated rivals Cleveland Cliffs, ArcelorMittal and Nucor and successfully won the right to acquire U.S. Steel. 

However, U.S. Steel shares have not yet reached the $55 offer price, suggesting investors expect the controversy surrounding the deal to delay the closing. The companies had previously said the deal was expected to close in the second or third quarter of this year. But Bloomberg News, citing people familiar with the matter, reported that the two steelmakers are expected to announce that the deal is expected to be completed in the second half of 2024. 


Leave A Message

Leave A Message
If you are interested in our products and want to know more details,please leave a message here,we will reply you as soon as we can.