Pittsburgh-based U. S. Steel stockholders overwhelmingly approved a proposed merger with Nippon Steel Corporation on Friday.
U. S. Steel said that at a special meeting, 98 percent of the votes, representing 71 percent of US Steel common stock, voted in favor of the transaction. Officials with the steelmaker said the combination of the two companies will create the global leader in the steel industry.
“The overwhelming support from our stockholders is a clear endorsement that they recognize the compelling rationale for our transaction with NSC,” David B. Burritt, president & CEO of U. S. Steel, said. “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.’”
The deal still faces major opposition. The Biden administration has expressed concerns about the merger’s implications on U.S. national security, supply chains and steel jobs. The merger is currently undergoing investigation from both the Justice Department and the Committee on Foreign Investment in the United States.
Additionally, the United Steelworkers union is concerned about potential job losses related to the transaction.
Officials with U. S. Steel said the merger will represent the best path forward for all of the company’s stakeholders, as well as for the United States and Pennsylvania. The company said the merger would make the company stronger and allow it to sustain its employees, and the company’s commitments to them, including obligations in place with 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,” the company said.