US President Donald Trump issued an executive order on Friday approving the merger of US Steel and Japan’s Nippon Steel, after the two companies signed a national security agreement with the US government.
US Steel and Nippon announced that the national security agreement will grant the US government a “golden share,” which stipulates specific commitments related to governance, domestic production, and trade. The companies did not specify what powers the US government will have through its golden share.
US Steel and Nippon said in a statement: “All necessary regulatory approvals for the partnership have been received, and the partnership is expected to close immediately.”
The companies added that the national security agreement calls for Nippon to invest $11 billion in new investments by 2028, including initial spending on a new project to be completed after 2028.
Trump added that the golden share gives the president complete control, without elaborating. Pennsylvania Senator Dave McCormick told CNBC last month that the golden share would effectively allow the government to control a number of board seats.
