98% of Shareholders Approve Merger
U.S. President Joe Biden reaffirmed his opposition to Nippon Steel's acquisition of US Steel, while US Steel shareholders approved the merger proposal with Nippon Steel.
On the 12th (local time), US Steel issued a press release stating that the merger proposal with Nippon Steel was overwhelmingly approved at the shareholders' meeting held that day.
According to US Steel, 71% of the total issued common shares participated in the vote at the extraordinary shareholders' meeting held that day, and 98% of them expressed approval of the merger.
David Burritt, CEO of US Steel, said after the shareholders' meeting approval, "The overwhelming support from shareholders clearly shows that they recognize this deal has compelling grounds."
US Steel's stock price rose more than 20% after the report in December last year that Nippon Steel would acquire US Steel for $14.1 billion (approximately 19.5 trillion KRW), but gave up a significant portion of the gains after President Biden expressed opposition to the acquisition.
Regardless of the shareholders' approval of the merger, the merger between the two companies must pass the security review by the Committee on Foreign Investment in the United States (CFIUS) to be finalized.
Earlier, Bloomberg reported that the CFIUS security review would take several months and is expected to be decided by the end of this year or early next year.
The U.S. political sphere opposes Nippon Steel's acquisition, mindful of the voting sentiment in the "Rust Belt" ? a declining industrial region including Pennsylvania, where US Steel's headquarters is located, and where unions have strong influence ? ahead of the November presidential election.
President Biden reaffirmed his existing opposition to Nippon Steel's acquisition of US Steel at a joint press conference held at the White House after a summit with Prime Minister Fumio Kishida on the 10th, stating, "We will keep our promises to the workers."
Former President Donald Trump, the Republican presidential candidate, also opposes the merger, saying he will "immediately and unconditionally block" Nippon Steel's acquisition of US Steel.
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