U.S. Steel shareholders approve $14.9 bln buyout by Nippon Steel
Nippon Steel, as expected, taking the merger one step closer to completion even as political opposition to the deal mounts.
U.S. Steel said that over 98% 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 U.S. lawmakers have come out in opposition to the deal, citing national security concerns. President Joe Biden has said U.S. Steel must remain a domestically owned American firm.
U.S. Steel's shares closed down 2.1% 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 U.S. companies, has met with the parties to discuss the deal, Reuters has reported.
The U.S. 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
