U.S. Steel shareholders vote for takeover by Nippon Steel

Steel makes history: For a long time, U.S. Steel's Gary Works steel mill at the edge of Lake Michigan was the largest steel mill in the world, and it still remains the largest integrated works in North America. Soon to be managed by Nippon Steel.
Image: U.S. Steel

The largest Japanese steel corporation, Nippon Steel, is set to take over the American steel producer U.S. Steel. The shareholders of U.S. Steel have agreed and opened the way to finalise the transaction.

With more than 98% of votes by eligible shares, the vast majority of U.S. Steel shareholders voted in favour of the suggestion to accept the fusion contract with Nippon Steel. The Japanese steel corporation joined the bidding competition for U.S. Steel last year, and towards the end of 2023, announced their intent to take over their US rival for 14.9 billion dollars. This would let the Japanese company advance its position from number four to number three in the ranking of global steel giants.
U.S. Steel CEO David B. Burritt commented that the vote represented the best path forward for all the stakeholders of the long-established steel producer. “We will deliver enhanced capabilities and innovations for our customers in the United States and globally, and be able to invest in greener steel to meet our climate commitments. And we will maintain the U. S. Steel name and Pittsburgh headquarters, with even more capital to invest in Pennsylvania.” He added that the transaction would make U.S. Steel and the domestic steel industry stronger and more competitive, “enhancing the legacy of steel that is mined, melted and made in America, in the face of unfair competition from China”.
The US trade union United Steel Workers International has so far vehemently opposed the takeover by Nippon Steel, and received support from politicians, both from Democrats and Republicans. Even US president Joe Biden recently spoke out against a takeover.
Source: U.S. Steel