Trump Administration Approves Nippon Steel US Steel Takeover with Perpetual Golden Share

President Donald Trump approved the $14.9 billion acquisition of U.S. Steel by Japan's Nippon Steel, but only after securing a rare "golden share" that grants the U.S. government perpetual veto power over major corporate decisions, including plant closures, sourcing changes, and relocating production or jobs outside the U.S. This unprecedented control mechanism, described as a sharp departure from traditional U.S. policy, has raised concerns among international investors and dealmakers about its potential to create a new regulatory norm for foreign takeovers of critical U.S. assets. The National Security Agreement accompanying the deal also gives Trump authority over the steelmaker’s operations and its dealings with labor unions, further complicating labor relations. While the golden share does not amount to total control, it allows the U.S. government to override other shareholders in key decisions, reflecting heightened national security concerns. This move has sparked debate on Wall Street and among legal experts about the implications for future foreign investments, with some fearing it may deter or complicate acquisitions in strategic sectors such as defense, energy, and minerals. The deal marks a significant shift in U.S. foreign investment policy, potentially setting a precedent for increased government oversight in critical industries.