Latest news with #GoldenShare
New Straits Times
a day ago
- Business
- New Straits Times
US Steel, Nippon partnership proceeds with security deal, 'golden share'
NEW YORK: The partnership between US Steel and Nippon Steel has reached a new phase, with an agreement on US national security guarantees, in addition to the so-called "golden share" advantage obtained by President Donald Trump's administration. On Friday evening, Trump signed an executive order approving the partnership, bringing an end to the long-running saga over foreign ownership of a key national asset which began in December 2023, when US Steel and Nippon Steel announced plans for a US$14.9 billion merger. Nippon's acquisition of US Steel was held up by former president Joe Biden, who blocked it in his last weeks in the White House on national security grounds. Trump initially opposed Nippon Steel's takeover plan, calling for US Steel to remain domestically owned, but he threw his support behind a "partnership" in May. "US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh," the US president said in a Truth Social post. In a joint statement, US Steel and Nippon Steel said Trump "has approved the Companies' historic partnership that will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs." "In addition to President Trump's Executive Order approving the partnership, the Companies have entered into a National Security Agreement (NSA) with the US Government," they said, which calls for approximately US$11 billion in new investments to be made by 2028. Trump's executive order did not provide details about the NSA, but he reserved the authority to issue further orders "as shall in my judgment be necessary to protect the national security of the United States." Friday's announcement follows a review of the deal by the government's Committee on Foreign Investment in the United States (CFIUS), which is tasked with analyzing the national security implications of foreign takeovers of US companies. On Saturday, Commerce Secretary Howard Lutnick insisted on the need for the "perpetual Golden Share," which gives the US government the right to block any action it so chooses. Lutnick did not elaborate on the precise value of the share, saying only that it had "powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of US Steel, and US manufacturers." He gave a list of examples of actions that the US government would have to approve, including any relocation of US Steel headquarters, moving the company outside the United States, changing its name or moving jobs outside the country.
Time of India
a day ago
- Business
- Time of India
US Steel, Nippon partnership proceeds with security deal, 'golden share'
The partnership between US Steel and Nippon Steel has reached a new phase, with an agreement on US national security guarantees, in addition to the so-called "golden share" advantage obtained by President Donald Trump's administration. On Friday evening, Trump signed an executive order approving the partnership, bringing an end to the long-running saga over foreign ownership of a key national asset which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger. Nippon's acquisition of US Steel was held up by former president Joe Biden, who blocked it in his last weeks in the White House on national security grounds. Trump initially opposed Nippon Steel's takeover plan, calling for US Steel to remain domestically owned, but he threw his support behind a "partnership" in May. "US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh," the US president said in a Truth Social post. Live Events In a joint statement, US Steel and Nippon Steel said Trump "has approved the Companies' historic partnership that will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs." "In addition to President Trump's Executive Order approving the partnership, the Companies have entered into a National Security Agreement (NSA) with the US Government," they said, which calls for approximately $11 billion in new investments to be made by 2028. Trump's executive order did not provide details about the NSA, but he reserved the authority to issue further orders "as shall in my judgment be necessary to protect the national security of the United States." Friday's announcement follows a review of the deal by the government's Committee on Foreign Investment in the United States (CFIUS), which is tasked with analyzing the national security implications of foreign takeovers of US companies. On Saturday, Commerce Secretary Howard Lutnick insisted on the need for the "perpetual Golden Share," which gives the US government the right to block any action it so chooses. Lutnick did not elaborate on the precise value of the share, saying only that it had "powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of US Steel, and US manufacturers." He gave a list of examples of actions that the US government would have to approve, including any relocation of US Steel headquarters, moving the company outside the United States, changing its name or moving jobs outside the country.
Int'l Business Times
2 days ago
- Business
- Int'l Business Times
US Steel, Nippon Partnership Proceeds With Security Deal, 'Golden Share'
The partnership between US Steel and Nippon Steel has reached a new phase, with an agreement on US national security guarantees, in addition to the so-called "golden share" advantage obtained by President Donald Trump's administration. On Friday evening, Trump signed an executive order approving the partnership, bringing an end to the long-running saga over foreign ownership of a key national asset which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger. Nippon's acquisition of US Steel was held up by former president Joe Biden, who blocked it in his last weeks in the White House on national security grounds. Trump initially opposed Nippon Steel's takeover plan, calling for US Steel to remain domestically owned, but he threw his support behind a "partnership" in May. "US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh," the US president said in a Truth Social post. In a joint statement, US Steel and Nippon Steel said Trump "has approved the Companies' historic partnership that will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs." "In addition to President Trump's Executive Order approving the partnership, the Companies have entered into a National Security Agreement (NSA) with the US Government," they said, which calls for approximately $11 billion in new investments to be made by 2028. Trump's executive order did not provide details about the NSA, but he reserved the authority to issue further orders "as shall in my judgment be necessary to protect the national security of the United States." Friday's announcement follows a review of the deal by the government's Committee on Foreign Investment in the United States (CFIUS), which is tasked with analyzing the national security implications of foreign takeovers of US companies. On Saturday, Commerce Secretary Howard Lutnick insisted on the need for the "perpetual Golden Share," which gives the US government the right to block any action it so chooses. Lutnick did not elaborate on the precise value of the share, saying only that it had "powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of US Steel, and US manufacturers." He gave a list of examples of actions that the US government would have to approve, including any relocation of US Steel headquarters, moving the company outside the United States, changing its name or moving jobs outside the country.
CBS News
3 days ago
- Business
- CBS News
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.
