US President Donald Trump will control a significant portion of the US Steel buyout until he leaves office, but this power will be taken away by future presidents, according to recent filings with the Securities and Exchange Commission.
Under the national security agreement made between Nippon Steel and the federal government in June 2023, Trump has exclusive authority over certain board decisions affecting domestic steel production and competition. However, when a new president takes office, control will revert to the Treasury Department and Commerce Department.
The US$15 billion deal, which saw Japan-based Nippon Steel acquire Pittsburgh-based U.S. Steel, has been finalized, with U.S. Steel now being owned in its entirety by Nippon Steel’s American subsidiary.
In this agreement, Trump had initially sought to block the deal but later reversed his stance after taking office. The deal is expected to have a significant impact on the steel industry, with Nippon Steel bringing top-notch technology and $11 billion investment plans for U.S. Steel facilities.
The national security agreement includes provisions allowing Trump to appoint an independent director, veto certain decisions, and influence key aspects of the company’s operations, including investments and sourcing outside the US.
Source: https://apnews.com/article/trump-us-steel-nippon-golden-share-pittsburgh-china-7981a41d2e518fad07c347042f9fdc38