Nippon Steel closed a $14.1 billion takeover of US Steel on Wednesday, in a deal that grants the Trump administration an unusual degree of power over the corporation after an 18-month push to finalize the purchase.
The deal will transform Japan’s Nippon into the world’s second largest steelmaker, and give the company production facilities in the US that will help it avoid President Donald Trump’s 50% steel tariffs.
As part of the deal, the US government has been given a “golden share” that will allow it to veto any decisions to reduce production or staffing levels.
Although Washington had traditionally criticized golden share agreements, an analyst told the Financial Times that the Trump administration may embrace the tool “to drive outcomes consistent with its ‘America First’ investment policy.”