U.S. Secures ‘Golden Share’ in Strategic Nippon Steel Partnership: What It Means for the Future

The U.S. government is looking to play a role in a partnership between U.S. Steel and Nippon Steel from Japan. Republican Senator Dave McCormick from Pennsylvania shared this news on CNBC. He explained that this partnership, which the companies will formalize with a national security agreement, includes a “golden share” for the U.S. government. This means the government will have a say in who sits on the board from the U.S.

Recently, President Trump mentioned his support for a $14 billion investment from Nippon Steel into U.S. Steel, but he didn’t provide details on ownership. He had previously expressed concerns about Nippon Steel fully acquiring the American company. U.S. Steel is based in Pennsylvania, a key state that supported Trump in the 2024 election.

However, the arrangements are still vague. McCormick didn’t share specific details on how this partnership will function, and the companies haven’t disclosed much about the investment either.

"Golden shares" are special stocks that give the government influence or control in a company, often seen in cases needing government oversight, like the bailout of General Motors during the 2008 crisis. Generally, the U.S. doesn’t take stakes in companies unless there’s financial support involved.

This plan raises eyebrows. Douglas Holtz-Eakin, president of the American Action Forum, argued that it’s unnecessary for the U.S. to take a stake in a private company. Critics are concerned about national security claims made by the Biden administration regarding Nippon Steel’s involvement. They believe that such acquisitions don’t pose significant risks.

A 2023 survey by Gallup found that public opinion is split on foreign investments in U.S. companies, with 48% showing some concern about national security implications. As discussions continue, it’ll be interesting to see how this partnership unfolds and what it means for U.S. manufacturing and security.

For more on this topic, you can check out the American Action Forum and their insights on foreign investments and national security.

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United States Politics and Government,Steel and Iron,Mergers, Acquisitions and Divestitures,Nippon Steel Corporation,United States Steel Corporation,Holtz-Eakin, Douglas,McCormick, David H (1965- )