The U.S. Securities and Exchange Commission revealed in a document on Wednesday (June 25) that the agreement for Japanese steel company Nippon Steel (formerly known as Nippon Steel Sumitomo Metal) to acquire U.S. Steel stipulates that the “golden share” granted to President Trump will not be transferred to the next U.S. president, but will instead be handed over to the U.S. Department of the Treasury and the Department of Commerce.
According to documents disclosed by the U.S. Securities and Exchange Commission (SEC), in the national security agreement signed by Nippon Steel for acquiring U.S. Steel, the U.S. government was granted a non-economic golden share, giving the U.S. government veto power over many key decisions of the merged company, including production halts, production cuts, and personnel levels.
President Trump will have control over the “golden share,” with the authority to appoint a board member and participate in significant decisions of the new company.
Under this provision, Trump will control this golden share during his term either personally or through his designated representative. However, the documents show that when someone else serves as U.S. president, the control over the golden share will be transferred to the U.S. Department of the Treasury and the Department of Commerce.
The White House did not immediately respond on Wednesday to questions regarding why Trump has direct control over this decision-making authority and why it will be transferred to the Treasury and Commerce Department when other presidents are in office.
Last week, Nippon Steel completed a $14.1 billion acquisition of U.S. Steel, making the struggling U.S. company a wholly-owned subsidiary of the Japanese steel giant. After the merger, the new company will also be using the old name of the U.S. Steel company.
According to documents disclosed by the SEC, this national security agreement took effect on June 13, with signatories including Nippon Steel, its U.S. subsidiary, and representatives from the U.S. government in the Commerce and Treasury Departments.
U.S. Steel stated on Wednesday that the full content of the national security agreement has not been publicly released, but some details have been outlined in the company’s statement and documents submitted to the SEC.
The process of reaching this deal took 18 months, with various twists and turns along the way, ultimately being completed with Trump’s support.
Nippon Steel is the fourth-largest steel company globally, and after merging with U.S. Steel, the new company will become the second-largest steel manufacturer in the world.
A previously released press release about the acquisition agreement indicated that the golden share also grants the U.S. government veto power over certain issues, including relocating U.S. Steel’s headquarters, moving job positions overseas, changing the company’s name, and potential future acquisitions by competitors.
(Based on Associated Press reporting)