The Donald Trump administration effectively allowed Japan's Nippon Steel to acquire U.S. Steel.
On the 15th, the Nihon Keizai Shimbun (Nikkei) reported that "Nippon Steel has decided to issue golden shares of U.S. Steel to the U.S. government," adding that "golden shares are stocks that possess veto rights over significant management matters, and they will be issued free of charge." While Nippon Steel will retain control of management, the structure allows the U.S. government to exercise management control and interference regarding decisions related to national security.
Specific details regarding the golden shares have not yet been disclosed, but the Yomiuri Shimbun quoted an official from Nippon Steel saying, "The golden shares have no voting rights, so management freedom will be guaranteed." Nippon Steel issued a joint statement with U.S. Steel, saying, "President Trump has approved the historic partnership between the two companies."
Nippon Steel obtained permission from the U.S. government about a year and a half after announcing its acquisition of U.S. Steel at the end of 2023. Nippon Steel plans to invest approximately $28 billion (about 38.3 trillion won) in this acquisition. Nikkei mentioned that "the acquisition of U.S. Steel ranks as the sixth largest among acquisitions of foreign corporations by Japanese corporations, but when combined with the investment amount, it rivals Takeda Pharmaceutical’s acquisition of Ireland-based Shire for approximately 7 trillion yen (about 66.4 trillion won), making it the second largest."
However, there are concerns in some quarters that the golden shares could become a shackling of management. The Yomiuri Shimbun noted, "The national security agreement and golden shares pose the possibility of becoming a management shackle for Nippon Steel," and added, "It may be difficult to respond appropriately when Chinese steel corporations engage in overproduction, causing prices to collapse."