US Steel shareholders have overwhelmingly approved the firm's sale to Japan's Nippon Steel for a cash payment of $14.1 billion.
Majority of the US Steel Shareholders Cast Votes in Favor of the Acquisition
According to The Associated Press, a preliminary count of ballots revealed by US Steel, a Pittsburgh-based steelmaker, shows that more than 98% of shares voted in favor of the acquisition during a special investor meeting on Friday.
In a press release, US Steel President and CEO David Burritt said: "The overwhelming support from our stockholders is a clear endorsement that they recognize the compelling rationale for our transaction with NSC."
"This is an important milestone as we progress toward completing the transaction. We are one step closer to bringing together the best of our companies and moving forward together as the 'Best Steelmaker with World-Leading Capabilities," he added.
According to Burritt, this transaction will make "US Steel and the domestic steel industry stronger and more competitive" amid "unfair competition from China."
Fox News reported that analysts had expected shareholder approval. The US Steel's shares were trading at about $41.20 midday before the vote. Nippon's offer pays $55 per share. The stock price is down 15% year-to-date.
Joe Biden Opposes Japan's Nippon Steel and US Steel Merger
The administration of President Joe Biden is against the acquisition of US Steel by Japan's Nippon Steel based on the grounds of economic and national security. In a statement in March, Biden emphasized the importance of local ownership of the iconic US firm.
"I told our steelworkers I have their backs, and I meant it. US Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated," Biden noted.
The merger, which would make the combined company the third largest steel producer in the world, is also opposed by the United Steelworkers International, the biggest industrial union in the US, which endorsed Biden last month.
With the US presidential election in November drawing closer, the votes of steelworkers in swing states are seen as increasingly crucial for Biden.
Japanese Prime Minister Fumio Kishida formally visited the White House on Wednesday, and he told reporters that he hoped the deal would proceed in "a direction that will be positive for both sides."
However, Biden said: "I stand by my commitment to American workers... I'm a man of my word. I'm going to keep it."
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