Title: Trump Gains Control Over "Golden Share" in U.S. Steel-Nippon Steel Deal
HARRISBURG — In a significant move concerning national security and industrial interests, President Donald Trump will retain control over the "golden share" tied to the recent acquisition of U.S. Steel by Japan’s Nippon Steel. This provision, part of a national security agreement, allows Trump to appoint a board member and influence decisions on domestic steel production and competition with foreign entities, as disclosed by the U.S. Securities and Exchange Commission.
While the White House clarified that the provision is not specifically granted to Trump but to the sitting president, the language in the agreement distinctly ties decision-making powers to Trump personally during his presidency. It states that specific decisions cannot be made without his written consent or that of a designated representative—a condition unique to his administration.
Nippon Steel’s nearly $15 billion acquisition, finalized last week, transforms U.S. Steel into a wholly owned subsidiary. Initially met with opposition—reflecting concerns over national security and job losses—the deal ultimately gained momentum, with Trump previously attempting to block it before shifting his stance.
Under the agreement effective June 13, Nippon Steel commits to invest $11 billion to modernize U.S. Steel’s operations, making the combined company the world’s fourth-largest steelmaker, addressing concerns over outdated infrastructure. Analysts anticipate that Nippon Steel’s advanced technology will significantly enhance U.S. Steel’s production capabilities.
The "golden share" includes several provisions, such as veto power over key decisions—like plant closures, job relocations, and changes in corporate structure—ensuring that U.S. interests remain protected amidst global competition. This pivotal acquisition illustrates the complex interplay between corporate strategy, national security, and presidential authority in shaping America’s industrial landscape.
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