Nippon Buyout Approved by US Steel Shareholders Amid Political Resistance

By Better Today On Apr 12, 2024

TL/DR –

US Steel shareholders have voted in favor of a $14.9 billion acquisition by Japan’s Nippon Steel, despite opposition from the Biden administration, steelworkers, and congressional lawmakers. Critics of the deal, including President Biden and members of both parties in Congress, argue that it could threaten national security, US industrial capacity, and the livelihoods of steel workers. US Steel, however, maintains that the transaction is the best path forward and will make the domestic steel industry stronger and more competitive.

U.S. Steel Shareholders Approve $14.9 Billion Deal with Nippon Steel

Despite facing opposition from the Biden administration, steelworkers, and congressional lawmakers, U.S. Steel shareholders approved a $14.9 billion acquisition by Japan’s Nippon Steel. According to a post on social platform X, 98% of stockholders voted in favor of the proposed merger.

The announcement of this deal in December has met with resistance from lawmakers across party lines. They argue that it could potentially compromise national security, U.S. industrial capacity, and steel workers’ livelihoods.

Sen. John Fetterman (D-Pa.) emphasized the importance of steel for national and economic security. Republican Senators J.D. Vance (Ohio), Marco Rubio (Fla.), and Josh Hawley (Mo.) have also called for the transaction to be blocked by the Committee on Foreign Investment in the United States (CFIUS).

President Biden criticized the proposed deal, stressing the need for maintaining strong American steel companies powered by American steel workers.

David McCall, president of the United Steelworkers (USW) union, expressed concerns about the potential impact of the deal on steel workers and national security in a February statement. He argued that the agreement between Nippon Steel and U.S. Steel puts both U.S. interests and the interests of USW members at risk.

However, U.S. Steel released a statement affirming that the transaction represents the best path forward for all of its stakeholders and will strengthen and increase the competitiveness of the domestic steel industry. The vote was held following Japanese Prime Minister Fumio Kishida’s State visit, where he participated in discussions with President Biden.