Nippon Steel-US Steel Deal Faces Control Dispute Amid US Golden Share

Nippon Steel's proposed acquisition of U.S. Steel faces significant uncertainty due to U.S. President Donald Trump's announcement that the U.S. government will hold a 'golden share' in the company, granting it 51% ownership and veto power over key decisions. Nippon Steel executives have expressed concerns that this arrangement limits their required management autonomy, causing them to reconsider the deal. The U.S. administration frames this 'golden share' policy as a means to ensure American control and revitalize domestic manufacturing. Discussions are ongoing, with both Nippon Steel and the U.S. government requesting more time from a U.S. appeals court to negotiate the terms of the $14.9 billion acquisition. Market reactions have reflected the uncertainty, with shares of both U.S. Steel and Nippon Steel declining. The situation underscores the complex balance between foreign investment and national control in critical industries.