US will have golden share in Nippon Steel's takeover of US Steel, lawmaker says [View all]
Source: Reuters
May 27, 2025 3:05 PM EDT Updated 4 hours ago
TOKYO/WASHINGTON, May 27 (Reuters) - The U.S. government will have veto power over key decisions relating to U.S. Steel (X.N), opens new tab, as part of a deal with Nippon Steel (5401.T) that would approve the Japanese firm's bid for the well-known American steel company, a U.S. lawmaker said on Tuesday. The details are laid out in what is called a national security agreement the companies will sign with the U.S. government, said Republican Senator David McCormick of Pennsylvania, where U.S. Steel is headquartered.
"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," he told CNBC in an interview after Nikkei reported that a golden share was under consideration.
It was not immediately clear if McCormick was announcing a new part of the deal beyond prior pledges made by the companies to the Committee on Foreign Investment in the U.S., which reviews foreign investments for national security risks and has reviewed Nippon Steel's bid for U.S. Steel twice.
But on Tuesday, investors appeared confident the deal would soon close, with U.S. Steel shares trading up 1.6% to $52.84 a share, close to their highest point since the deal was announced. U.S. President Donald Trump was expected to address the deal in a rally at a U.S. Steel plant in Pennsylvania this week.
Read more: https://www.reuters.com/business/us-government-may-hold-some-us-steel-shares-nippon-steel-deal-kyodo-says-2025-05-27/
From the excerpt -
What the hell with these damn "rallies".
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