(Reuters) – U.S. Steel shareholders voted in favor of the proposed $14.9 billion acquisition by Japan’s Nippon Steel, moving the merger closer to completion while the deal faces regulatory scrutiny and political opposition.
Nippon’s proposal to buy U.S. Steel has been opposed by several U.S. lawmakers on national security grounds, with President Joe Biden expected to voice concerns over the buyout in the coming days.
The deal, which is a culmination of multiple bids by a range of suitors for the 122-year-old company, has also drawn criticism from the powerful United Steelworkers union.
Here’s a timeline of recent events leading up to the deal between Japan’s largest steelmaker and the company whose steel was used to build iconic structures such as the United Nations building in New York City and the New Orleans Superdome.
DATE DEVELOPMENT
Aug. 13, 2023 U.S. Steel announces its intention to
explore strategic alternatives after
receiving multiple unsolicited proposals,
ranging from the acquisition of certain
production assets to consideration for the
entire company
Aug. 13, 2023 U.S. Steel rejects a $7.3-billion offer from
Cleveland-Cliffs, leading to the initiation
of a formal review of its strategic options
Aug. 14, 2023 The United Steelworkers (USW) union supports
Cleveland-Cliffs’ bid to acquire U.S. Steel,
saying the company is the best strategic
buyer
Aug. 14, 2023 Shares of U.S. Steel rise after privately
held firm Esmark makes a $7.8-billion
all-cash offer for the company
Aug. 16, 2023 ArcelorMittal, the world’s second-largest
steelmaker, considers a potential offer for
U.S. Steel, Reuters reports
Aug. 17, 2023 U.S. Senator J.D. Vance asks U.S. Steel to
rule out a foreign buyer for the company
Aug. 17, 2023 U.S. Steel states that its labor agreement
with USW does not grant the union the right
to veto a potential sale of the company
Aug. 22, 2023 Cleveland-Cliffs demands U.S. Steel reveal
all buyout offers it has received
Aug. 23, 2023 Esmark withdraws its bid for U.S. Steel,
respecting the position of the USW union,
which supports Cleveland-Cliffs’ offer
Aug. 29, 2023 U.S. Steel begins the due-diligence process
after entering agreements with numerous
third parties
Sept. 20, 2023 U.S. Steel and Cleveland-Cliffs clash over a
confidentiality pact
Sept. 21, 2023 Canada’s Stelco Holdings considers a bid for
U.S. Steel, Bloomberg news reports
Sept. 28, 2023 U.S. Steel allows Cleveland-Cliffs to
participate in its sale process
Oct. 31, 2023 Major automakers oppose Cleveland-Cliffs’
proposed acquisition of U.S. Steel, citing
potential cost increases and a slowdown in
electric-vehicle sales
Dec. 18, 2023 Japan’s Nippon Steel announces its plan to
buy U.S. Steel in a deal valued at $14.9
billion
Dec. 19, 2023 Three U.S. Republican senators urged
Treasury Secretary Janet Yellen to block the
acquisition of U.S. Steel by Nippon Steel,
citing national security concerns.
Dec. 20, 2023 Brian Deese, a key player in President Joe
Biden’s 2024 re-election bid, said that
Nippon Steel’s proposed purchase of U.S.
Steel was concerning and that the
administration should look closely at it.
Dec. 21, 2023 The White House said Nippon Steel’s proposed
acquisition of U.S. Steel deserves “serious
scrutiny,” given the company’s core role in
U.S. steel production that is critical to
national security.
Dec. 22, 2023 Japanese Industry Minister Ken Saito said
that U.S.-Japanese ties were “stronger than
ever,” although he declined to comment
directly on growing scrutiny in the United
States of a proposed deal for Nippon Steel
to buy U.S. Steel.
Jan. 05, 2024 Nippon Steel was confident of successfully
completing its planned acquisition of U.S.
Steel, despite opposition from labor union
and certain U.S. senators, its president
said.
Jan. 12, 2024 Nippon Steel said President Eiji Hashimoto
would become CEO and chairman effective
April 1, remaining at the helm as the top
Japanese steelmaker aims to complete a deal
to take over U.S. Steel
Jan. 24, 2024 Nippon Steel Executive Vice President
Takahiro Mori met U.S. Congress members to
discuss acquisition of U.S. Steel, as it
faced strong resistance to the deal.
Jan. 30, 2024 Sumitomo Mitsui Financial Group, Mitsubishi
UFJ Financial Group and Mizuho Financial
Group planned to lend Nippon Steel a
combined $16 billion for its planned
acquisition of U.S. Steel.
Feb. 07, 2024 Nippon Steel said it was on track to
finalize its planned acquisition of U.S.
Steel by the end of September as it stepped
up talks with key stakeholders, particularly
labor unions.
March 04, 2024 A senior Nippon Steel executive told Reuters
he was set to meet the United Steelworkers
union chief to seek support for acquiring
U.S. Steel.
March 13, 2024 President Joe Biden planned to express
concern over Nippon Steel’s proposed
purchase of U.S. Steel, pushing the U.S.
company’s stock nearly 13% lower on bets the
deal could face greater political
opposition.
The U.S. Department of Justice
April 10, 2024 opened an in-depth
antitrust investigation
into Nippon Steel’s takeover of
U.S. Steel.
U.S. Steel shareholders
April 12, 2024 voted to approve
the acquisition, taking the
merger one step closer to completion even as
political opposition to the deal mounts.
Sources: Reuters reports, company records
(Reporting by Abhinav Parmar, Shivansh Tiwary, Kannaki Deka and Aatreyee Dasgupta; Editing by Pooja Desai, Anil D’Silva and Maju Samuel)
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