U.S. Steel's shareholders approved a $14.9 billion sale to Nippon that would mean an end to independent domestic control of an iconic American steelmaker that became the world's first billion-dollar corporation, developed the city Gary as a company town and was largely responsible for spurring the development that transformed Northwest Indiana from sand dunes and marshland into the second largest metro in the state.
Holders of more than 98% of shares representing 71% of U.S. Steel's common stock voted in favor of a merger that would make U.S. Steel a subsidiary of Tokyo-based Nippon. Nippon offered to buy U.S. Steel for $55 a share, a 142% premium that far exceeds most acquisition offers.
It proposed buying the company for $14.1 billion in an all-cash transaction and assuming about $800 million in debt, bringing the total value of the transaction to $14.9 billion.
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“The overwhelming support from our stockholders is a clear endorsement that they recognize the compelling rationale for our transaction with NSC," U.S. Steel President and CEO David Burritt said. "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.’"
The proposal has met with bipartisan opposition, including from U.S. Rep. Frank J. Mrvan, D-Highland.
U.S. Steel said the deal, which would let it maintain its corporate headquarters in Pittsburgh and which would not result in any immediate layoffs, would be in the long-term best interest of the company and its stakeholders.
"This transaction truly represents the best path forward for all of U. S. Steel’s stakeholders — union and non-union employees, customers, communities and stockholders — and for the United States and our home in Pennsylvania. By creating the best steelmaker in the world, we will have a stronger company to sustain our talented employees and fulfill all commitments to them, including all of the obligations under the agreements in place with our unions," Burritt said. "We will deliver enhanced capabilities and innovations for our customers in the United States and globally, and be able to invest in greener steel to meet our climate commitments. And we will maintain the U. S. Steel name and Pittsburgh headquarters, with even more capital to invest in Pennsylvania."
U.S. Steel put itself on the market after an unsolicited takeover offer from Cleveland-Cliffs last summer. The company said Nippon put forward the best offer and that a Cleveland-Cliffs buyout likely would face antitrust scrutiny.
The United Steelworkers union has campaigned against the sale, expressing concerns about what a foreign owner would mean for American steelmaking. Burritt said it would make the company more competitive on a global stage. U.S. Steel would operate as an American subsidiary of a company that's already the fourth largest steelmaker in the world at a time when China has taken over much of the world's steelmaking capacity.
"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," he said.
The deal still faces antitrust and national security reviews.
A look back at Northwest Indiana businesses that closed in 2023
A look back at Region businesses that closed in 2023
Beer Geeks, one of the Region's first, most beloved and most influential craft beer bars, closed after more than a decade and is being reimagined as a new concept.
The landmark 88-year-old castle-shaped White Castle in Whiting is coming down to be replaced with a newer, larger, more modern White Castle restaurant.Â
A longtime staple in downtown Crown Point poured its last drink.
The longtime Westforth Sports gun shop is closing.
The Silver Line Building Products plant at 16801 Exchange Ave. will be shuttered permanently.
Brewfest in Highland will close in what's been called "an end of an era."
David's Bridal filed for bankruptcy and could close all stores if no buyer emerges to save it.
The 88-year-old Whiting White Castle will be remembered with displays at museums in two different states.
For years, the "millionaire's club" met every morning in the corner booth of the historic 88-year-old White Castle at Indianapolis Boulevard and 119th Street in downtown Whiting. The landmark restaurant served its final slider Tuesday.Â
One of Northwest Indiana's most popular and enduring hobby shops is looking for a buyer after the longtime owner died.
J&L This N That Consignment Shop, a popular thrift store, closed in downtown Whiting after a run of several years.
A Calumet Region institution, Calumet Fisheries on the far South Side of Chicago, is temporarily closed after failing a city health inspection.
Just days after reopening after city health inspectors shut it down, Calumet Fisheries suffered a major fire.
Pepe's Mexican Restaurant is no mas in Valparaiso.
Beer Geeks in Highland rebranded as B-Side Bar & Lounge and then closed within a few months.
Troubled retailer Bed Bath and Beyond will permanently close its Valparaiso location as it shutters more stores nationwide as it looks to restructure and shrink its footprint to save the struggling business.
Peoples Bank has shuttered its branch in downtown Hammond.Â
Viking Artisan Ales will soon pour its last craft beer at its Merrillville taproom.
Old Chicago Pizza & Taproom is closing after 15 years at one of Northwest Indiana's most prominent highway interchanges.
The Chicago Auto Show, the nation's largest auto show, returns to McCormick Place Saturday, running through Feb. 19.