Trump Gets 'Golden Share' In $14 Billion US Steel Deal, But Control Shifts To Federal Agencies Under Future Presidents

Nippon Steel Corp. (OTC:NPSCY) completed its acquisition of United States Steel Corp. (NYSE:X), with President Donald Trump securing unprecedented “golden share” powers that grant the U.S. government veto authority over key corporate decisions.

What Happened: The $14 billion transaction transforms U.S. Steel into a wholly owned subsidiary of Nippon Steel North America, according to U.S. Securities and Exchange Commission filings. U.S. Steel shares ceased trading on the New York Stock Exchange last week, with delisting effective June 30.

Trump’s approval came through a National Security Agreement signed June 13 between the companies and the U.S. Treasury and Commerce departments.

The golden share mechanism gives the current president veto power over U.S. Steel’s name changes, headquarters relocation from Pittsburgh, production shifts overseas, facility closures, and material acquisitions of competing U.S. businesses.

The structure ensures future presidents will inherit these oversight powers, creating permanent government influence over the iconic steelmaker’s strategic decisions. According to CNBC, under the NSA terms, U.S. Steel’s board majority and CEO must remain U.S. citizens, while the company stays incorporated domestically.

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Why It Matters: Nippon Steel committed $11 billion in U.S. investments by 2028, including $1 billion for a new greenfield facility. The companies pledged to protect over 100,000 jobs while maintaining domestic production capacity.

The deal reverses Biden administration opposition, which blocked the acquisition in January, citing national security concerns. Trump initially opposed the takeover during his 2024 campaign but ordered a fresh review after taking office in January.

U.S. Steel stock surged 5.10% to $54.85 on approval news, with trading volume exceeding 14 million shares compared to the 100-day average of 8.55 million shares. The company’s shares reached $54.97 before the trading suspension.

The transaction required multiple regulatory clearances, including the Department of Justice antitrust review. Trump simultaneously doubled steel import tariffs to 50% to protect domestic production while approving the foreign acquisition.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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