21.04.2024

U.S. Steel shareholders vote in favour of takeover by Nippon Steel

© U.S.Steel
Steel makes history: The U.S. Steel Gary Works steelworks on Lake Michigan was for a long time the largest steelworks in the world and remains the largest integrated plant in North America. It will soon be under the management of Nippon Steel. Image: U.S. Steel

Nippon Steel, Japan’s largest steel group, is set to take over the American steelmaker U.S. Steel. The approval of U.S. Steel’s shareholders paves the way for the transaction to be finalised.

With more than 98 per cent of the voting shares, the overwhelming majority of U.S. Steel’s shareholders voted in favour of the proposal to approve the merger agreement with Nippon Steel. The Japanese steel group entered the bidding war for U.S. Steel last year and announced at the end of 2023 that it intended to take over its US rival for 14.9 billion dollars. This would see the Japanese group move up from fourth to third place among the world’s steel giants.
U.S. Steel CEO David B. Burritt described the vote as the best course of action for all stakeholders of the long-established steel producer. “We will be able to offer our customers in the United States and worldwide enhanced capabilities and innovation, and invest in greener steel to meet our climate commitments. And we will retain the name U.S. Steel and our headquarters in Pittsburgh, with even more capital to invest in Pennsylvania.” The transaction will strengthen U.S. Steel and the domestic steel industry and “enhance the legacy of steel in the US 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 has received political support from both Democrats and Republicans. US President Joe Biden had also recently spoken out against the takeover.
Source: U.S. Steel