'US Steel, Symbol of American Industrialization, on the Verge of Acquisition by Japanese Company... Temporary General Meeting to Be Held'

Temporary General Meeting Scheduled on 12th to Approve Nippon Steel Acquisition
Union and US Political Opposition May Cause Difficulties
Company Known as a 'Symbol of American Industrialization'

Japan Steel's acquisition of US Steel has entered the final countdown. The Yomiuri Shimbun reported on the 10th that a special shareholders' meeting to discuss Japan Steel's acquisition proposal will be held on the 12th in the afternoon US time (early morning on the 13th Japan time).

[Image source=Yonhap News]

The special shareholders' meeting will be approved if more than one-third of the total voting rights are present and more than half of the total voting rights agree. There is expected to be no problem passing the approval proposal. This is because the purchase price per share of US Steel stock proposed by Japan Steel is $55, which is about 35% higher than the closing price on the 8th ($40.55).

However, obstacles remain. The United Steelworkers (USW) strongly oppose it, and the reaction from the US political sphere is also negative. Earlier, on the 14th of last month, US President Joe Biden expressed a negative reaction, saying, "US Steel has been an iconic American steel company for over a century, and it is essential that it remains an American steel company owned and operated domestically." Former President Donald Trump said in January, "It is a terrible story that US Steel is being sold to Japan. I will immediately stop it."

The US Steel issue may also be raised at the US-Japan summit meeting held on the 10th. Prime Minister Fumio Kishida said in an interview with the Yomiuri Shimbun on the 4th that since it is an issue of an individual private company, "I find it difficult to think that it will be mentioned at the summit."

US Steel is called a symbol of American industrialization. It grew rapidly during World War II by supplying hundreds of millions of tons of steel to the US Department of Defense. It increased its value by participating in the construction of landmarks such as the United Nations building in New York and the Willis Tower in Chicago. However, it has declined as Chinese steel companies and others have risen.