The so-called golden share to be held by the U.S. government in United States Steel will prevent the company from relocating its headquarters from Pittsburgh or changing its name without the consent of the U.S. president, Commerce Secretary Howard Lutnick said Saturday.
Tokyo-based Nippon Steel plans to acquire all common shares in U.S. Steel while issuing a golden share in the U.S. company to the American government.
Lutnick said that the golden share will also prevent Nippon Steel from reducing, waiving or delaying its $14 billion investment into U.S. Steel, transferring production or jobs outside the United States and closing or idling plants before certain time frames without the consent of the U.S. president, Lutnick said.
The golden share "has powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of U.S. Steel, and U.S. manufacturers that will have massively expanded access to domestically produced steel," Lutnick said in a post on X.
U.S. President Donald Trump signed an executive order on Friday that says Nippon Steel's acquisition of U.S. 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 U.S. government that calls for it to receive a golden share.
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