US Government Gains Golden Share Veto Power in Nippon Steel US Steel Deal

The Trump administration has secured a 'golden share' in Nippon Steel's $14.1 billion acquisition of U.S. Steel, granting the U.S. government veto power over key management decisions to ensure American control and job retention. This golden share, described as perpetual, allows President Trump or his designee to block actions such as relocating U.S. Steel’s headquarters from Pittsburgh, changing the company’s name, reducing or delaying the planned $14 billion investment, and transferring production or jobs outside the United States. Secretary of Commerce Howard Lutnick detailed these terms, emphasizing that Nippon Steel’s investment will revitalize and expand steel production in the U.S. The measure aims to maintain U.S. Steel’s production capacity and workforce domestically, addressing concerns over foreign ownership and national security. The deal followed an 18-month negotiation period and includes a national security agreement, signaling strong government oversight of the strategic steelmaker. Critics, including labor unions, have expressed disappointment over the arrangement, citing concerns about the level of control and its impact on workers.