Trump Approves U.S. Steel-Nippon Merger with Conditions, Grants U.S. 'Golden Share' to Protect National Security

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: KDKA

President Donald Trump signed an executive order Friday approving a controversial investment by Japan’s Nippon Steel in U.S. Steel, contingent upon the companies executing a national security agreement with the U.S. government.

The agreement, which remains largely confidential, includes provisions for approximately $11 billion in new domestic investments by 2028 and grants the U.S. government a so-called "golden share" a form of veto power over decisions that may impact national security, particularly related to American steel production capabilities.

“We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership,” the companies said in a joint statement. “This partnership will bring a massive investment that will support our communities and families for generations to come.”

The executive order comes after months of scrutiny by the Committee on Foreign Investment in the United States (CFIUS), which found "credible evidence" that the acquisition could threaten national security without sufficient safeguards. However, the order noted that risks could be “adequately mitigated” under the terms of the proposed agreement.

Trump’s order did not specify how the golden share will function, but experts say such arrangements typically grant the U.S. government approval rights over key business decisions including plant closures, divestments, or offshoring of production.

“This 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,” White House spokesman Kush Desai said Friday.

Nippon Steel first announced its intent to acquire U.S. Steel in late 2023 in a $15 billion offer valued at $55 per share. That offer was met with bipartisan concern over the potential impact on American manufacturing and jobs. As part of negotiations, Nippon Steel pledged to retain U.S. Steel's headquarters in Pittsburgh, maintain operations at existing plants, and appoint a board of directors with a majority of American citizens.

The companies say the value of the transaction has since grown to $28 billion, including capital investments such as a new electric arc furnace a more modern and energy-efficient method of steel production to be built in the U.S. after 2028.

Trump, who had previously opposed the acquisition while campaigning, reversed course after returning to office in January. On Thursday, he stated he would have "total control" over the golden share provisions. “We have a golden share, which I control,” he said, though he expressed concern about how future administrations might exercise that power.

Despite Trump's claim that the agreement would preserve “51% ownership by Americans,” Nippon Steel has maintained its intent to own U.S. Steel as a wholly owned subsidiary.

Regulatory review by the Department of Justice and CFIUS has been completed, and all necessary approvals have been obtained. The companies say the merger is now expected to be finalized promptly.

Shares of U.S. Steel rose by 5% in after-hours trading following the announcement.

The Treasury Department and other agencies involved in CFIUS will oversee the implementation of the national security agreement. Trump’s executive order reserves the right for the president to issue further actions if necessary.

No filing related to the golden share or security terms was made with the U.S. Securities and Exchange Commission on Friday.