U.S. Steel (X.N), new tab As expected, shareholders approved Nippon Steel (5401.T)'s $14.9 billion acquisition, moving the merger closer to completion despite political opposition.
U.S. Steel claimed over 98% of voters approved the agreement, which called for Nippon to pay $55 per share, a high premium when the buyout was disclosed in December.
Since then, numerous U.S. politicians have opposed the pact for national security concerns. President Joe Biden claims U.S. Steel must remain American-owned.
U.S. Steel's shares fell 2.1% to $41.33 on Friday, below Nippon Steel's $55 offer, citing uncertainties over regulatory approval. Due of employment losses, the United Steelworkers (USW) union has criticized the transaction.
"We are not surprised by stockholders electing to cash in and sell out the iconic American company's employees and retirees," the USW said.
Regulators are also reviewing the acquisition. CFIUS, a powerful council that assesses foreign investments in U.S. corporations, met with the parties to discuss the agreement, Reuters said.
The Japanese steelmaker said it is "confident" the acquisition will "protect and grow U.S. Steel and bring significant benefits to its stakeholders...as well as to the American steel industry and the United States as a whole."
Nippon Steel defeated Cleveland-Cliffs (CLF.N), ArcelorMittal (MT.LU), and Nucor (NUE.N) in the U.S. Steel race. Previous statements by the firms indicate that the purchase will close in the second or third quarter.
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