The pending acquisition of U.S. Steel by Nippon Steel could be approved as new terms are reportedly being included in the agreement to secure the Trump administration’s backing.
Those terms are expected to give the U.S. government veto power over key decisions made that involve U.S. Steel and will be outlined in a national security agreement the two companies will sign, Sen. Dave McCormick, R-Pa., said Tuesday.
Nippon Steel initially proposed buying U.S. Steel in 2023 for $14.9 billion, but the deal has been on hold due to political opposition. Former President Joe Biden blocked the deal on national security grounds before leaving office, though the companies filed a lawsuit arguing the process was unfair.
President Donald Trump’s administration launched a fresh review of the deal last month and appeared to signal support for it on Friday, writing on social media that a partnership will allow Nippon Steel to invest without taking ownership of U.S. Steel.
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Trump said on Friday that U.S. Steel “will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh.”
He added that the partnership “will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy. The bulk of that investment will occur in the next 14 months.”
McCormick said during a Tuesday interview on CNBC that the deal could feature a so-called “golden share” that lets the U.S. government exert control over certain operational decisions and board membership.
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“It’ll be a U.S. CEO, a U.S. majority board and then there will be a golden share, which will essentially require U.S. government approval of a number of the board members, and that will allow the United States to ensure production levels aren’t cut and things like that,” McCormick told the outlet.
Nikkei first reported that a potential golden share was under consideration by the parties to a deal.
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Last year, Nippon Steel and U.S. Steel said they would give the Committee on Foreign Investment in the United States (CFIUS) the ability to veto production decreases at U.S. Steel facilities for a period of 10 years to assuage concerns about steel supplies and their impact on national security.
A term sheet offered to CFIUS in September also said that a majority of U.S. Steel’s board members would be American and that three “independent U.S. Directors” would be approved by CFIUS.
The White House said Trump “looks forward to returning to Pittsburgh… on Friday to celebrate American Steel and American jobs.”
Trump is expected to hold a rally at U.S. Steel in Pittsburgh on May 30.
Reuters contributed to this report.
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