Shareholders of United States Steel will vote on Friday on a
planned takeover of the company by a Japanese firm. This comes amid a labor
union's opposition to the buyout.
US Steel and Nippon Steel announced in December that they had
entered into an agreement that would enable the Japanese firm to acquire the US
corporation in an all-cash transaction.
Both sides said at the time that the deal was "expected to
close in the second or third quarter of calendar year 2024." They added
that it was subject to approval by US Steel shareholders and regulators.
Nippon Steel said it would buy US Steel at 55 dollars per share
and that the purchase price represented a 40 percent premium to the US
company's closing stock price on December 15, 2023.
Two major US proxy advisory firms, which provide guidance to
investors, have recommended that US Steel shareholders vote for the
transaction.
But the United Steelworkers union, or USW, opposes the deal. Its
negotiations with Nippon Steel have yet to be concluded.
The USW said on Tuesday that it had received a letter from Nippon
Steel that contains some commitments. But the USW responded by reiterating that
it opposes the acquisition plan. It described the letter as "another
meaningless piece of paper."
In March, US President Joe Biden also indicated
that he does not support the proposed takeover. Biden said that he wants US
Steel to remain "domestically owned and operated."