US To Have ‘Golden Share’ In Nippon Steel Partnership With US Steel
“In the case of Pennsylvania, this saves about 10,000 jobs, 4,000 steelworkers in the surrounding jobs, but beyond that, it adds another 10,000 jobs in the building trades to build a new arc furnace…” ~Sen. Dave McCormick
Katabella Roberts | The Epoch Times
The United States will have a “golden share” in Japan-owned Nippon Steel’s acquisition of U.S. Steel, giving it veto power over some key decisions, Sen. Dave McCormick (R-Pa.) said on May 27.
Speaking to CNBC, the Pennsylvania lawmaker said the details of the deal are laid out in a national security agreement that the companies are expected to sign with the government.
“The control structure is going to be somewhat unique,” McCormick said.
“It’ll be a U.S. CEO, a U.S.-majority board, and then there will be a golden share, which will essentially require U.S. government approval of a number of the board members, and that will allow the United States to ensure production levels aren’t cut and things like that.”
McCormick added that Nippon has agreed to invest $14 billion into U.S. Steel as part of the deal.
“That’s going to be $2.4 billion, at least, in the Mon Valley right outside of Pittsburgh,” he said.
U.S. Steel is headquartered in Pennsylvania.
“In the case of Pennsylvania, this saves about 10,000 jobs, 4,000 steelworkers in the surrounding jobs, but beyond that, it adds another 10,000 jobs in the building trades to build a new arc furnace. That’s part of the plan, so this is being extremely well received in Pennsylvania,” McCormick said.
McCormick’s comments come just days after President Donald Trump said he had approved a “planned partnership” that would allow the Japanese company’s nearly $15 billion planned acquisition of the American steelmaker to move forward while ensuring the latter keeps its headquarters in Pittsburgh.
The partnership, which followed “much consideration and negotiation,” will create at least 70,000 jobs, Trump wrote in a May 23 post on social media platform Truth Social.
“This is the largest Investment in the History of the Commonwealth of Pennsylvania. My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA. From Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE is BACK,” Trump said.
The bulk of Nippon Steel’s investment “will occur in the next 14 months,” the president added.
Following his post on Truth Social, Trump told reporters on May 25 that U.S. Steel will be “controlled by the United States, otherwise, I wouldn’t make the deal,” and that it’s “an investment, and it’s a partial ownership, but it will be controlled by the USA.”
Biden Opposed Deal Amid National Security Concerns
Nippon Steel first announced its plan to acquire the 122-year-old steelmaker in December 2023, with the Tokyo-based company saying it expected to close the deal in the second or third quarter of 2024.
The move was blocked by President Joe Biden because of national security concerns.
In a statement announcing his decision, Biden said a committee of national security and trade experts across the executive branch had determined the acquisition would “place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.”
Trump had also opposed the acquisition during his 2024 presidential campaign. He later changed his stance on the deal. In April, he directed the Committee on Foreign Investment in the United States to conduct a new review of the transaction and evaluate any potential national security risks.
Following his May 25 post regarding the “planned partnership,” U.S. Steel’s share price increased by more than 20 percent.
Nippon Steel has not said whether it is willing to accept the deal described by Trump and McCormick.
When asked whether the Japanese steel giant is aware of what it has agreed to as part of the deal, McCormick said Nippon Steel will continue to have members of the board as “part of their overall corporate structure.”
He said the deal will also allow Nippon Steel to gain access to the U.S. market as well as the economic benefits that come with that access, something he said the company had sought.
The partnership will also allow the Japanese company to benefit from the policies that Trump has put in place with steel tariffs, the lawmaker said.
“So, I think, they looked at this structure, they know what they’re getting into,” McCormick stated.
“They’ve negotiated it. It was their proposal, and I think they saw it as a great strategic move for them and one that’s great for the United States.”
***
The Epoch Times contacted Nippon Steel for comment but did not receive a response by publication time.
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Header featured image (edited) credit: (Nikkei montage/Source photos by Getty Images, AP and Yuki Nakao) Emphasis added by (TLB)
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