The U.S. government will wield a “golden share” in Nippon Steel’s acquisition of US Steel, giving it veto authority over critical decisions—including production levels and board appointments—as part of a national security agreement to safeguard American interests, Republican Senator David McCormick revealed Tuesday.
Key Deal Terms
🏛️ Golden Share Powers:
- U.S. can block production cuts or major strategic shifts.
- CFIUS-approved “Independent U.S. Directors” will oversee compliance.
🇺🇸 American Leadership: - U.S. CEO and majority-American board mandated.
- Core management must be U.S. citizens.
Political Backdrop
🗳️ Trump’s Endorsement:
- Called it a “partnership” creating 70,000 jobs + $14B economic boost.
- Will celebrate at a Pittsburgh rally Friday—signaling 2024 election optics.
⚖️ Biden’s Block Overturned: - Biden had halted the deal in January citing national security.
- Trump’s new CFIUS review paved the way for approval with stricter terms.
Market & Industry Impact
📈 Stock Surge: US Steel shares rose 1.6% to 52.84∗∗,nearingNippon’s∗∗52.84∗∗,nearingNippon’s∗∗55/share offer.
🏭 Steel Future Secured:
- Ensures no drastic job cuts or offshoring of production.
- Nippon’s 14Binvestment∗∗(includinga∗∗14Binvestment∗∗(includinga∗∗4B new mill) locked in.
Why It Matters
🔒 National Security Win: Prevents foreign control over critical infrastructure.
⚙️ Industrial Policy Shift: Sets precedent for future foreign takeovers of strategic assets.
📉 Union Concerns: United Steelworkers still oppose the deal, but lack leverage.
What’s Next?
- Final CFIUS Sign-Off: Expected imminently after Trump’s tacit approval.
- Legal Challenges: Unions may sue, but golden share terms weaken their case.
- Global Signal: Shows U.S. openness to foreign investment—with strings attached.
US Secures ‘Golden Share’ in Nippon Steel’s $14.9B US Steel Takeover, Veto Power Over Key Decisions