U.S. Steel Shareholders Voted Over 98% in Favor Of Being Acquired By Nippon Steel

U.S. Steel (X.US) shareholders voted on Friday to approve Nippon Steel’s proposed $14.9 billion acquisition of the company, in line with market expectations. U.S. Steel said more than 98% of the votes cast were in favor of the deal. Friday’s vote is an important step in the process of completing the deal. However, the deal still faces huge regulatory pressure. U.S. Steel closed down 2.1% on Friday at $41.33, well below the $55 per share purchase price, reflecting uncertainty over whether the deal will win regulatory approval.

However, the deal has drawn criticism from Democratic and Republican U.S. lawmakers as well as the powerful United Steelworkers union. The United Steelworkers union urged regulators to “comprehensively review” the deal and determine whether the merger is “consistent with the national security interests of the United States and the interests of workers.” The White House said the deal warranted a “careful review” given the company’s role in U.S. steel production, which the U.S. government considers critical to national security.

The acquisition is also being reviewed by the Committee on Foreign Investment in the United States, which reviews foreign buyers for national security concerns that may arise from acquisitions of U.S. companies, people familiar with the matter said. The review is expected to take several months, with a decision expected later this year or early next year.

Nippon Steel said in a statement that it was “confident” that the acquisition would “protect and grow U.S. Steel and provide significant benefits to its stakeholders, both for the U.S. steel industry and the United States as a whole.” “We look forward to working closely with U.S. Steel as we move forward together as the best steelmaker with world-leading capabilities,” said lead negotiator Takahiro Mori.