(New York) The shareholders of the American steelmaker US Steel approved on Friday during an extraordinary general meeting the proposed takeover by its Japanese competitor Nippon Steel (NSC), an operation to which President Joe Biden is opposed.
According to a press release from the American group, its shareholders voted “overwhelmingly” in favor of this project.
A provisional count shows approval by the holders of 98% of the shares represented at the EGM on Friday morning, or approximately 71% of the group’s capital.
“The impressive support from our shareholders is a clear indication that they recognize the compelling logic of our transaction with NSC,” commented David Burritt, CEO of US Steel, quoted in the press release.
“This is an important step in our progress towards finalizing the transaction,” he continued.
The Japanese giant’s offer involves payment of $55 per share, or $14.9 billion in total (debt included). Finalization was expected, at the latest, in the third quarter of 2024.
“We are not surprised that shareholders have decided to pocket money and sell out the employees and retirees of this emblematic American company,” reacted the USW metalworkers union in a press release.
But the merger seems rather poorly underway.
Indeed, American President Joe Biden, campaigning for a second term, announced in mid-March that he was opposed to it in the name of defending American “workers”.
“US Steel has been an iconic company for more than a century, and it is vital that it remains an American company, controlled and managed from the United States,” he said then.
“It is important that we maintain strong American steel companies, operated by American workers,” he added.
Concern is particularly strong in Pennsylvania (northeast), the state where US Steel’s headquarters are located and which will be decisive in the presidential election in November.
Nippon Steel has committed not to cut jobs or close US Steel sites until September 2026.
US Steel shares ended the session on Friday on the New York Stock Exchange down 2.13%.