Sale of U.S. Steel to Nippon Steel takes another step forward

On Friday, April 12, the United States Steel Corporation (U.S. Steel) announced that its stockholders had overwhelmingly voted to approve the proposed merger with Nippon Steel Corporation.

Stockholders vote to approve merger of U.S. Steel

In December 2023, Bham Now reported that Nippon Steel—Japan’s largest steelmaker—had announced plans to purchase U.S. Steel for $14.1 Billion.

Once the largest company in the world, U.S. Steel’s size has diminished over the years—falling from the world’s eighth-largest steel producer in 2008 to the world’s 24th-largest in 2022. 

Headquartered in Tokyo, Nippon Steel sought to acquire U.S. Steel to help meet the growing demand for high-grade, automotive and electrical steel. Once the merger is complete, Nippon Steel will become the second-largest steel company in the world, just behind China Baowu Steel Group Corp., Ltd.

Following the special meeting of stockholders held on Friday, U.S. Steel stockholders voted overwhelmingly to approve the proposed merger with Nippon Steel. According to a press release, shareholders represent roughly 71% of all shares of U.S. Steel common stock voted at the Special Meeting.

98% of those shares voted in favor of the proposal.

“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.’”

David B. Burritt, President & Chief Executive Officer of U.S. Steel

According to U.S. Steel President and CEO David B. Burritt, the merger will create a stronger company that can deliver enhanced innovations for customers both in the U.S. and globally. In addition, he noted that:

• U.S. Steel will fulfill all commitments to its employees, including all obligations under agreements with its unions
• U.S. Steel will be able to invest in greener steel to meet its climate commitments
• The company will maintain its U.S. Steel name and its headquarters in Pittsburgh and will gain 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.”

David B. Burritt, President & Chief Executive Officer of U.S. Steel

Historically, U.S. Steel has had an enormous impact on Birmingham’s early history through the steelmaking industry. To this day, U.S. Steel maintains a significant presence in Alabama through its real estate holdings and its steel plants in Fairfield.

What do you think about the U.S. Steel merger with Nippon Steel? Tag us @bhamnow to let us know!