"Golden Share" to help US Steel keep its name, Lutnick says
The "golden share" to be held by the US government in United States Steel Corp. will prevent the company from relocating its headquarters from Pittsburgh, Pennsylvania, and changing its name without the consent of the US president, US Commerce Secretary Howard Lutnick said Saturday.
Tokyo-based Nippon Steel Corp. plans to acquire all common shares in US Steel while issuing a golden share in the US company to the US government.
Lutnick said that the golden share will also prevent Nippon Steel from reducing, waiving or delaying its 14-billion-dollar investment into US Steel, transferring production or jobs outside the United States and closing or idling plants before certain timeframes without the consent of the US president, Lutnick said.
The golden share "has powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of US Steel, and US manufacturers that will have massively expanded access to domestically produced steel," Lutnick said in a post on X.
US President Donald Trump signed an executive order on Friday that says Nippon Steel's acquisition of US Steel will be approved on the condition that risks to national security are mitigated.
Based on the order, the two steelmakers concluded a national security agreement with the US government that calls for it to receive a golden share.
[Copyright The Jiji Press, Ltd.]
Photo by Reuters
