Trump Secures ‘Golden Share’ Power in US Steel Buyout: What This Means for Future Presidents and US Agencies

HARRISBURG, Pa. (AP) — Recent filings with the U.S. Securities and Exchange Commission reveal that President Donald Trump will have control over a key element of the national security agreement related to Nippon Steel’s nearly $15 billion acquisition of U.S. Steel.

This “golden share” provision allows Trump, or someone he appoints, to influence major company decisions impacting domestic steel production. However, once he leaves office, this control will shift back to the Treasury and Commerce Departments.

The purchase, finalizing last week, turns U.S. Steel into a fully owned subsidiary of Nippon Steel. Initially, Trump aimed to block the acquisition, echoing actions taken by former President Joe Biden. However, after taking office, he shifted his position, framing the merger as a “partnership” that would benefit both firms.

The national security agreement went into effect on June 13. It includes stipulations about financial commitments and strategic decision-making. Although the complete agreement hasn’t been made public, details have emerged in various statements and filings.

Nippon Steel’s path to acquiring U.S. Steel faced significant delays, largely due to national security concerns and opposition from the United Steelworkers union. This deal makes the combined company the world’s fourth-largest steelmaker, enhancing U.S. Steel’s aging production methods with Nippon Steel’s advanced technology.

Experts believe that this acquisition could rejuvenate U.S. Steel’s operations and competitiveness. Nippon Steel has pledged an investment of $11 billion to modernize U.S. Steel facilities. The golden share provision was likely added as a safeguard, granting Trump the authority to veto decisions related to major operational changes, such as plant closures or job relocations.

Data from recent industry reports suggest that China’s dominance in steel production could be challenged by this deal, potentially reshaping the landscape of the global steel market.

As public discussion unfolds about the implications of this acquisition, many observers are eager to see how the collaboration between these two steel giants will develop and its effects on American jobs and industry standards.



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