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It has been discovered that the terms of the agreement include granting US Steel’s “golden stock” to the US government over Nippon Steel’s acquisition of US Steel, a major US steel company. Photo taken on May 26th in Kimitsu, Chiba Prefecture (reuters/Issei Kato, 2025)
US government to Gain Veto Power Over US Steel in Nippon Steel Acquisition
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By Invented Reporter | WASHINGTON – 2025/05/27 20:23:52
As part of the agreement for Nippon Steel’s acquisition of US Steel, the US government will be granted “golden stock,” giving it the power to veto critical decisions, according to reports. This revelation came from a US senator following a meeting with US President Trump.
The “golden shares” will allow the US government to block decisions on key issues, such as reducing production. Sen. Dave McCormick of Pennsylvania, where US Steel is based, stated that the agreement also stipulates that US Steel’s top executives must be American citizens, and a majority of the board must be comprised of Americans.
Rep. McCormick told CNBC, “There will be an american CEO, a board of directors with a majority of Americans, and a golden share. Essentially, multiple board members will need US approval, which will ensure that US production levels will not be reduced.”
It remains unclear whether Rep. McCormick has disclosed any new details to the US Foreign Investment Committee (CFIUS) beyond the previous commitments made by both companies.
white House Responds
White House Press Secretary Desai addressed the Nippon Steel acquisition of US Steel, stating, “President Trump looks forward to returning to Pittsburgh on the 30th (where US Steel is headquartered) to celebrate US steel and employment.”
“There will be an American CEO, a board of directors with a majority of Americans, and a golden share.”
Neither nippon Steel nor US Steel have offered any comments on the matter.
Nippon Steel previously indicated that the majority of US steel’s directors, as outlined in the NSA term sheet submitted to CFIUS in September 2024, would be American, with three designated as “self-reliant US directors” subject to CFIUS approval. The term sheet also stated that production capacity reductions would require approval from a majority of these independent US directors.
Acquisition Price Unchanged
Sources familiar with the situation have confirmed that Nippon Steel’s acquisition price for US Steel remains at $55 per share.
Anticipation of the deal’s imminent closure led to a 2% increase in US Steel’s stock price, reaching $53 on the US stock market on the 27th – the highest level since the acquisition proposal was announced.