President Trump says Americans will own 51% of U.S Steel as part of "golden share" in Nippon deal
President Trump says U.S. will have "Golden Share" in U.S. Steel
President Trump says U.S. will have "Golden Share" in U.S. Steel
President Trump says U.S. will have "Golden Share" in U.S. Steel
As part of a "golden share" ownership stake, Americans will own a 51% stake of U.S. Steel after its "planned partnership" with Nippon Steel is finalized, according to President Trump, who shared the update with a crowd assembled at the White House on Thursday.
"We have a golden stock, we have a golden share, which I control, the president controls," Trump said. "But that gives you total control, 51% ownership by Americans."
Questions have remained about whether the new U.S. Steel will be majority American-owned or just have a board of directors controlled by Americans.
United Steelworkers called on U.S. Steel to release more details about the deal in a June 6th letter to its members.
"Yet despite President Trump's rally in the Mon Valley last week, we have seen nothing credible regarding the nature of this so-called partnership, including whether it meaningfully differs from Nippon's initial proposal to acquire U.S. Steel and make it a wholly owned subsidiary," the letter said.
U.S. Senator Dave McCormick told CNBC last month that the "golden share" will help to ensure steel production levels are not cut, and the U.S. would control a certain several U.S. Steel board seats.
At his rally at U.S. Steel's Irvin plant, Trump said the company would remain an "American company," but did not specify what the ownership structure would be. The specific details have still not been publicly shared.
Trump, during the press conference on Thursday, also said how much Nippon is spending on the U.S. Steel deal.
"We have a company, a great company, Nippon, they are coming in from Japan, they are going to spend $17 billion," Trump said Thursday
At the rally, Trump said Nippon was making a $14 billion commitment to U.S. Steel, saying $2.2 billion would go to the Mon Valley, where workers have feared aging steel mills could soon close without upgrades.
Trump said that after the rally will have the final say on whether the deal is approved, but he had not seen the finalized deal.
Community leaders split on what defines "American-owned"
Mon Valley leaders have disagreed on how to define what an "American" company is.
"American to me is owning the company, having ownership," said Cheryl Freedman, a Pleasant Hills Borough Council member. "I feel that being an American-owned company is important."
She had hoped Americans would own at least 51% of the company.
West Mifflin Mayor Chris Kelly, a vocal proponent of the Nippon Steel deal, said he wasn't sure if the new U.S. Steel would be American in a technical sense, but it doesn't have to be for it to be an American company.
KDKA asked him to address the concerns people have about the ownership structure.
"The mining is going to be done by Americans. The melting is going to be done by Americans. The manufacturing is going to be done by Americans," Kelly said.
Kelly believes a deal with Nippon Steel will save thousands of jobs, Pittsburgh's steelmaking legacy, and the "golden share" will act as U.S. government oversight during the national security decision-making process.
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