(Reuters) -U.S. Metal shareholders on Friday authorized its proposed $14.9 billion acquisition by Japan’s Nippon Metal, taking the merger one step nearer to completion at the same time as political opposition to the deal mounts.
U.S. Metal mentioned that over 98% of the votes had been in favor of the deal below which Nippon can pay $55 per share, an quantity that represented a hefty premium when the takeover was introduced in December.
Since then, nevertheless, a number of U.S. lawmakers have come out in opposition to the deal, citing nationwide safety issues. President Joe Biden has mentioned U.S. Metal should stay a domestically owned American agency.
The deal has additionally drawn sturdy criticism from the United Steelworkers (USW) labor union, which is fearful about potential job losses.
Regulators are additionally scrutinizing the deal. The Committee on International Funding in the USA (CFIUS), a strong panel that critiques overseas investments in U.S. firms, has met with the events to debate the deal, Reuters has reported.
The U.S. Justice Division has opened an in-depth antitrust investigation into the takeover, Politico reported on Wednesday.
Nippon has pledged no job cuts because of the deal, to honour all agreements between the union and U.S. Metal in addition to to maneuver its personal U.S. headquarters to Pittsburgh the place U.S. Metal is predicated.
The Japanese steelmaker gained the race for U.S. Metal over rivals Cleveland-Cliffs (NYSE:), ArcelorMittal (NYSE:) and Nucor (NYSE:).
Nonetheless, U.S. Metal shares haven’t hit the provide worth of $55, signalling that traders count on the controversy across the deal to delay its closing.
The deal is predicted to shut within the second or third quarter of this yr, the businesses have mentioned beforehand.
Bloomberg Information reported on Friday, citing individuals conversant in the matter, that each steelmakers are anticipated to introduced they now anticipate the deal to shut within the second half of 2024.
