Nearly 100 percent of the United States Steel Corp. shareholders who cast votes on Friday regarding Nippon Steel Corp.'s proposed acquisition of the company approved the plan, despite opposition from unionized workers backed by President Joe Biden.

The U.S. steelmaker said, based on a preliminary count of ballots, that more than 98 percent of the votes at a special meeting of shareholders were in favor of its $14.1 billion merger deal with the major Japanese firm.

"The overwhelming support from our stockholders is a clear endorsement that they recognize the compelling rationale for our transaction with (Nippon Steel)," David Burritt, president and chief executive officer of U.S. Steel, said in a statement. "We are one step closer to bringing together the best of our companies."

The Japanese and U.S. companies believe the merger, creating the world's third-largest steelmaker by volume, would benefit both sides. But since the planned all-cash transaction was announced in December, United Steelworkers International has expressed strong opposition, turning it into a political issue.

In mid-March, Biden, who wants to secure support from labor unions for the November presidential election, said the iconic steelmaker should be domestically owned.

"It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it," Biden said in a statement.

Former President Donald Trump, who is running against Biden in a bid to return to the White House, has also said he would "block" Nippon Steel's plan.

U.S. Steel, founded in 1901, is headquartered in Pittsburgh, Pennsylvania, a key battleground state in the presidential election.

The Biden administration has said Nippon Steel's plan should be scrutinized in terms of its potential impact on national security, despite the offer being from a key U.S. ally.

Nippon Steel has said its advanced production technology would improve operations of the U.S. firm, which was once an industrial leader but has fallen to 27th in global output.

The Tokyo-headquartered company has also promised to leave the name and branding of U.S. Steel unchanged, while vowing no jobs would be lost as a result of the acquisition.

==Kyodo

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