The Nippon Steel Corporation and the United States Steel Corporation on Friday came to an agreement with the U.S. government that enables a merger between the two companies. The move comes after a highly contentious debate and after the Biden administration had blocked the merger in January, citing national security reasons.
In response to the agreement, Trump issued an executive order amending Biden’s to allow for the current deal to go forward. “Today’s executive order ensures U.S. Steel will remain in the great commonwealth of Pennsylvania, and be safeguarded as a critical element of America’s national and economic security,” a White House spokesman, Kush Desai, announced.
The deal will give the federal government a “golden share” in the company, which enables the government to own a part of the company and closely monitor it. Giving the government a “golden share” is rare. The most notable instance was the bailout of General Motors following the 2008 recession. The specifics of the “golden share” in the current deal are unclear, but it could potentially give the federal government considerable leverage over the operation of the company.
“We have a golden stock. We have a golden share, which I control, or the president controls,” President Donald Trump commented Thursday. “Now I’m a little concerned whoever the president might be, but that gives you total control.”
Last month, Trump had announced his intention to secure a deal, raising tariffs on steel and aluminium imports from 25 percent to 50 percent to incentivize Nippon Steel to operate in the American market through U.S. Steel.
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