U.S. gov't wants veto power over major decisions in U.S. Steel-Nippon Steel deal
The United States Steel logo is pictured outside the headquarters building in downtown Pittsburgh.
The U.S. government is considering acquiring a stake in United States Steel Corp. that would give it veto power over major decisions amid plans by Japan's Nippon Steel Corp. to acquire the U.S. steelmaker, sources familiar with the matter said Tuesday.
Washington apparently sees getting a "golden share" in the U.S. steelmaker, providing special rights to block certain actions by Nippon Steel such as slashing production capacity, as a way to assuage concerns over national security risks.
The Japanese steelmaker has been planning on making its U.S. counterpart a wholly owned subsidiary, but U.S. President Donald Trump has yet to reveal the size of the stake he would approve of. The golden share scheme may limit the autonomy of Nippon Steel.
Trump on Sunday said U.S. Steel would remain under American control even after a partnership with Nippon Steel.
"It's an investment and it's a partial ownership, but it will be controlled by the U.S.A.," he said.
The remarks came after he ordered the Committee on Foreign Investment in the United States to conduct another review of the plans. The first, launched under the administration of former U.S. President Joe Biden after the Japanese and U.S. steel companies announced the deal in December 2023, failed to reach a consensus.
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