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US Steel and Nippon Steel Merger Approved by Trump with Gov ‘Golden Share’

By  |  June 15, 2025

President Donald Trump signed an executive order on Friday greenlighting the merger between U.S. Steel and Japan’s Nippon Steel, following the companies’ agreement with the U.S. government on a national security arrangement, according to CNBC.

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    The deal includes a unique “golden share” provision that grants the U.S. government certain rights in the merged entity, covering governance, domestic manufacturing, and trade obligations, per CNBC. However, details about the specific powers held by the government under this golden share remain undisclosed by the companies.

    In a joint statement, U.S. Steel and Nippon confirmed that all necessary regulatory approvals have been obtained, and they expect to finalize the partnership soon. The national security pact requires Nippon Steel to invest $11 billion by 2028, which includes funds for a greenfield project planned to continue beyond that year.

    Trump has described the golden share as giving the president “total control,” though he has not provided further clarification. Pennsylvania Senator Dave McCormick recently told CNBC that this arrangement effectively allows the government to influence board representation within the company.

    Read more: Trump Orders Fresh Review of Nippon Steel’s $14 Billion Bid for US Steel

    The merger had previously faced resistance from Trump, especially amid the 2024 presidential campaign, as concerns over foreign acquisitions of U.S. firms gained bipartisan attention. Despite initial opposition, Trump softened his stance after taking office, initiating a renewed review of the deal in April. The previous administration under President Joe Biden had blocked the sale citing national security issues, despite Japan’s status as a close ally.

    Trump has avoided labeling the transaction as a simple acquisition, instead referring to it as a “partnership” on his social media platform Truth Social. During a May 30 speech at a U.S. Steel plant near Pittsburgh, he emphasized that the company would remain “controlled by the USA,” though official filings indicate U.S. Steel will become a wholly owned subsidiary of Nippon North America. This discrepancy stirred confusion among investors and union representatives.

    In addressing U.S. Steel employees, Trump assured that Nippon Steel would operate the company’s blast furnaces at full capacity for at least a decade and promised no layoffs or outsourcing. Additionally, he announced a $5,000 bonus for workers as part of the deal.

    As part of broader trade policy moves, Trump revealed that he was doubling tariffs on steel imports to 50%, effective June 4. This comes amid ongoing trade negotiations with Japan, with investors keen to see agreements that protect domestic industries while avoiding steep tariffs, per CNBC.

    Source: CNBC