US Offers Details of 'Golden Share' Arrangement for Nippon-US Steel Deal
The Trump administration released more details about the conditions for Japan-based Nippon Steel's purchase of U.S. Steel, which Trump said would result in a $14 billion investment in the U.S. economy while keeping the American company headquartered in the U.S. (see 2505230075).
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The deal includes a so-called "golden share" that the U.S. will hold in U.S. Steel, which gives Trump power to veto any relocation of U.S. Steel’s headquarters from Pittsburgh, any company name change and the shuttering of any plants, Commerce Secretary Howard Luntick said on social media June 14. It also includes "other protections regarding employee salaries, anti-dumping pricing, raw materials and sourcing outside the U.S., acquisitions, and more."
The golden share "has powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of U.S. Steel, and U.S. manufacturers that will have massively expanded access to domestically produced steel," Lutnick said.
The White House said June 13 that the Committee on Foreign Investment in the U.S. identified "risks to national security arising as a result" of the deal, but those risks "can be adequately mitigated" if certain conditions are met.