The Trump administration provided specific details about its plan to control U.S. Steel operations through a “golden share” system that will accompany Nippon Steel’s proposed $15 billion acquisition.
The golden share which the U.S. president controls provides oversight authority to the government through a national security agreement that supports the deal. The acquisition process of Nippon Steel allows the company to move forward while the U.S. government maintains strategic control over the Pittsburgh-based firm.
The administration describes this arrangement as a partnership instead of a complete sale even though Nippon Steel has announced its intention to acquire full ownership. Commerce Secretary Howard Lutnick explained in a post that the golden share system would let the White House make decisions about the company even though the administration supports deregulation efforts.
The plan includes $11 billion in new investments through 2028. The regulatory approval process has been completed but organized labor remains concerned about both job security and foreign ownership control.
The deal serves two purposes according to Trump by protecting American industry while drawing foreign capital but critics doubt the appropriateness of extensive government control over private business operations.
