Trump secures golden share in Nippon Steel’s $14.9B US steel deal for control

Nippon Steel has completed its $14.9 billion purchase of US Steel, giving President Donald Trump unprecedented control through an unusual "golden share" arrangement, Reuters confirmed on Wednesday. The Japanese company bought all US Steel shares at $55 each, finalizing a deal that had struggled for 18 months amid political opposition. Under the national security agreement, Trump can name a board member and holds veto power over major corporate decisions, including plant closures, production cuts, and overseas job transfers.

Commerce Secretary Howard Lutnick had previewed these extensive government controls in a weekend X post. The golden share also blocks any potential headquarters move from Pittsburgh, name changes, or future rival acquisitions. This reflects the president’s broader America-first industrial strategy that has prioritized domestic steel production and manufacturing jobs throughout 2025, with national security lawyers warning such government control could discourage foreign investment in American companies. The United Steelworkers union called Trump's new authority a "startling degree of personal power over a corporation" while stating they would continue monitoring Nippon's commitments closely.

The deal represents a crucial victory for Nippon Steel's global expansion strategy as American steel demand grows amid rising trade tensions, according to the Pittsburgh Post-Gazette reporting on Wednesday's closure. According to the United States Steel’s announcement, the acquisition brings $11 billion in US Steel facility investments through 2028, which will expand in later years. Nippon Steel will transfer approximately 40 employees to US Steel operations while establishing new research and development centers in Pennsylvania's Mon Valley region.

The agreement requires US citizens to hold majority board positions and key executive roles, including CEO, CFO, and senior production leadership. The Post-Gazette noted that Nippon must maintain US production capacity to meet domestic market demand and cannot interfere with trade actions under American law. This aligns with Trump's America-first employment policies, emphasizing domestic production over foreign competition while protecting American manufacturing jobs from overseas relocation. The new US Steel board will include up to nine members, with a government security committee of three independent directors overseeing compliance with national security requirements.

The golden share mechanism grants Trump extraordinary corporate oversight powers rarely seen in American business, CBS News analysis revealed following Friday's executive order. Commerce Secretary Lutnick described the arrangement as "perpetual," though questions remain about whether future presidents inherit these powers.

CBS reporting indicates Trump will name one of three independent board directors and can veto the other appointments, establishing direct White House influence over corporate governance. The deal follows months of political maneuvering after former President Biden blocked the transaction in January over national security concerns, prompting company lawsuits challenging the review process as biased. Trump reopened the national security review in April, with his cabinet members now comprising the approval committee.

The arrangement reflects Trump's agenda by increasing tariffs on foreign steel imports and requiring domestic content in infrastructure projects to protect American steelworker jobs. Golden shares remain uncommon in the United States, though other countries have used similar mechanisms to maintain government influence over privatized businesses and strategic industries.