U.S. Steel Shareholders Sign Off On Sale to Nippon Steel

U.S. Steel's sale to Japan's Nippon Steel cleared one major hurdle, with shareholders signing off on the deal....
U.S. Steel Shareholders Sign Off On Sale to Nippon Steel
Written by Matt Milano
  • U.S. Steel’s sale to Japan’s Nippon Steel cleared one major hurdle, with shareholders signing off on the deal.

    U.S. Steel has a long and storied history in U.S. industry, having been founded in 1901. The company has played a pivotal role in everything from the auto industry to the military. Despite its importance, the company recently entered an agreement to acquired by Nippon Steel.

    According to company President and CEO David B. Burritt, shareholders “overwhelming support” for the deal.

    “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.’”

    Interestingly, Burritt framed the deal as an important step in dealing with competition from China.

    “This transaction truly represents the best path forward for all of U.S. Steel’s stakeholders – union and non-union employees, customers, communities and stockholders – and for the United States and our home in Pennsylvania,” Burritt continued. “By creating the best steelmaker in the world, we will have a stronger company to sustain our talented employees and fulfill all commitments to them, including all of the obligations under the agreements in place with our unions. We will deliver enhanced capabilities and innovations for our customers in the United States and globally, and be able to invest in greener steel to meet our climate commitments. And we will maintain the U.S. Steel name and Pittsburgh headquarters, with even more capital to invest in Pennsylvania.

    “This transaction will make U.S. Steel and the domestic steel industry stronger and more competitive, enhancing the legacy of steel that is mined, melted and made in America, in the face of unfair competition from China.”

    Despite shareholders signing off, the deal is still far from complete. It must pass regulatory approval, the United Steelworkers union opposes the deal, and President Biden has expressed his desire for the company to remain under American ownership.

    It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it. U.S. 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.

    Only time will tell if the deal goes through, but it certainly faces significant headwinds.

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