US Steel Shareholders Approve Merger with Japan’s Nippon Steel, Despite Opposition from Biden and Trump

US Steel shareholders have approved a merger with Japan’s Nippon Steel. However, significant obstacles loom ahead as President Joe Biden and former President Donald Trump, the Republican presidential candidate, have made clear their opposition to Nippon Steel’s acquisition of US Steel.

In a press release on the 12th (local time), US Steel announced that the merger with Nippon Steel received overwhelming support at the shareholders’ meeting that day.

According to US Steel, 71% of total common shares participated in the vote at the interim general meeting, with 98% expressing support for the merger. David Burritt, CEO of US Steel, commented after the general meeting’s approval, stating, “The resounding support from shareholders demonstrates their recognition of the compelling rationale behind this deal.”

The merger’s approval at this shareholders’ meeting follows a significant increase in US Steel’s stock price, rising by over 20% since Japan’s Nippon Steel announced its acquisition of US Steel for $14.1 billion (approximately 19.5 trillion won) in December last year. However, much of this increase was relinquished when President Biden opposed the acquisition.

Despite shareholder approval, the merger can only be finalized upon passing the security concern review by the Committee on Foreign Investment in the United States (CFIUS).

Previously, Bloomberg reported that the CFIUS security concern review could take several months, with a decision expected by the end of this year or early next year.

The US political sphere opposes Japan’s acquisition of Nippon Steel ahead of the November elections. This opposition is interpreted as being conscious of the sentiment in the ‘Rust Belt’ region, including Pennsylvania, where US Steel is headquartered and union influence is strong.

During a joint press conference at the White House following a summit with Prime Minister Fumio Kishida on the 10th, President Biden reaffirmed his previous opposition to Japan’s Nippon Steel’s acquisition of US Steel, stating, “We will uphold promises to workers.”

Former President Donald Trump, the Republican presidential candidate, also hinted at his opposition to the merger, declaring, “I will immediately and unconditionally block Japan’s Nippon Steel’s acquisition of US Steel.”