Nippon Steel’s US steel purchases have been shut down, and a big role for Trump
By Alexandra Alper
(Reuters) – Japanese companies are confirming President Donald Trump’s extraordinary level of power after an 18-month struggle to close their purchases, the company said.
Under the terms of the contract, Nippon bought 100% of its US steel stock at $55 per share, first laid out in a December 2023 offer to a well-known but struggling steel maker.
The corporations also revealed details of the national security agreements that were engraved in the administration. This gives Trump the power to qualify his uneconomic golden share with his board members.
White House spokesman Kush Desai called the transaction history and said Golden Share “protects America’s national and economic security.”
Eiji Hashimoto, chairman and CEO of Nippon Steel, thanked Trump for his role, adding that “Nippon Steel is excited to open a new chapter in the celebratory history of American steel.”
The contract includes an extraordinary level of control that has been recognized by the government by the government to save the contract, a rocky path to recognition that has been spurred by high levels of political opposition.
Including golden shares in particular to obtain approval from the Foreign Investment Committee for the US, which scrutinizes foreign investment for national security risks, could distract foreign investors from US companies, national security lawyers said.
“The Golden Share Optics – they suggest that pure national security analysis is a bit difficult to divorce from political decision-making,” said Josh Gruenspect, national security lawyer for Wilson Sonsini.
The press release announcing the contract points out that Golden Share is giving US government rights. Includes “the right to appoint one independent director and the right to consent of the President of the United States or his nominee on certain matters.”
The US government has a veto decisions of many companies, from idling plants to reducing production capacity and moving overseas employment abroad.
The share also rejects the government the potential relocation of US Steel’s headquarters from Pittsburgh, transfer of jobs abroad, name changes and potential future acquisitions of rival businesses, the release shows.
The United Steelworkers Coalition, which has vehemently opposed the contract, said it “contains Japan to its commitment and continues to monitor it,” adding that GoldenShare is giving Trump a “surprising degree of personal strength over businesses.”