Trump clears path for Nippon Steel investment in US Steel that gives feds a golden share

President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S.Steel, so long as the Japanese company complies with a “national security agreement” submitted by the federal government.Trump’s order didn’t detail the terms of the national security agreement.

But U.S.Steel and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S.

government a “golden share” — essentially veto power to ensure the country’s national security interests are protected.“We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership,” the two companies said.“This partnership will bring a massive investment that will support our communities and families for generations to come.

We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.”The companies have completed a U.S.Department of Justice review and received all necessary regulatory approvals, the statement said.“The partnership is expected to be finalized promptly,” the statement said.The companies offered few details on how the golden share would work and what investments would be made.Trump said Thursday that he would as president have “total control” of what U.S.

Steel did as part of the investment.Trump said then that the deal would preserve “51% ownership by Americans.” The Japan-based steelmaker had been offering nearly $15 billion to purchase the Pittsburgh-based U.S.Steel in a merger that had been delayed on national security concerns starting during Joe Biden’s presidency.

Trump opposed the purchase while campaigning for the White House, yet he expressed optimism in working out an arrangement once in office.“We have a golden share, which I control,” said Trump, although it was unclear what he meant by suggesti...