US President Donald Trump has proposed a “golden share” deal with Nippon Steel that could give the federal government substantial control over US Steel, a move that has raised concerns among investors and experts. The proposal, which was announced in an executive order on Friday, would allow the president to have a “golden stock” or “golden share” that gives him control over corporate decisions.
The deal, worth $14 billion, has been shrouded in mystery, with neither Trump nor Nippon Steel confirming whether it’s a takeover, partnership, or some new form of government-backed venture. The US Steel union, which opposed the sale to Nippon Steel, has requested more information about the deal.
The concept of a golden share is unusual in the US and would require significant changes to traditional national security agreements. It could also drastically alter the shape of the deal, potentially making it unworthy for shareholders to accept.
While Trump’s announcement provided some clarity on the terms of an agreement that would resolve security threats posed by the deal, details remain murky. The companies have not confirmed how a golden share would work or what kind of accountability and oversight there would be to ensure Nippon Steel makes good on its promises.
Experts say that taking an actual stake in a company as part of a national security deal would be a significant change. “It would be very odd for the US to start holding golden shares in companies,” said Gregory Shaffer, a law professor at Georgetown University.
The proposal has raised concerns about setting a new precedent for foreign investment and giving the federal government too much control over corporate decisions. “The notion of the US government taking an ownership interest or extracting an ownership interest to get approval would be concerning,” said Aimen Mir, a deputy assistant secretary for investment security.
As the deal moves forward, investors will be watching closely to see how it unfolds. The shares of US Steel closed down more than 2 percent on Friday after news broke that Nippon Steel’s executive had expressed concerns over management freedom in the deal.
Source: https://www.nytimes.com/2025/06/13/business/nippon-us-steel-deal-trump.html