U.S. Steel Shareholders OK Nippon Steel Takeover

Nearly 100 percent of the US Steel Corp. shareholders who cast votes regarding Nippon Steel Corp.'s proposed acquisition of the company approved the plan, despite opposition from unionized workers backed by President Joe Biden, reported Kyodo News.

The Japanese and U.S. companies believe the merger, creating the world's third-largest steelmaker by volume, will benefit both sides. I Photo: United States Steel

The US steelmaker said, based on a preliminary count of ballots, that more than 98 percent of the votes at a special meeting of shareholders were in favor of its $14.1 billion merger deal with the major Japanese firm.

The votes in favor of the transaction represented 71 percent of its outstanding shares, as also reported by Mainichi Japan.

"The overwhelming support from our stockholders is a clear endorsement that they recognize the compelling rationale for our transaction with (Nippon Steel)," said David Burritt, president and chief executive officer of US Steel, in a statement.

"We are one step closer to bringing together the best of our companies."

The Japanese and U.S. companies believe the merger, creating the world's third-largest steelmaker by volume, will benefit both sides.

But since the planned all-cash transaction was announced in December, United Steelworkers International (USI) has expressed strong opposition, turning it into a political issue.