Key Facts
• June 12, 2025: Trump discusses ‘golden share’ at White House event.
• Nippon Steel plans to acquire US Steel but insists on full ownership.
• ‘Golden share’ proposal grants U.S. government 51% ownership, raising concerns.
• Nippon Steel increased planned investment from $1.4 billion to $14 billion.
• Partial ownership risks technology leaks and reduced management freedom.
• Economist warns of $800 million penalty if Nippon Steel withdraws.
• June 18, 2025: Deadline for Biden’s acquisition halt order.
• Trump may overturn Biden’s order, leaving Nippon Steel with tough choices.
Summary
Nippon Steel’s acquisition of US Steel faces uncertainty as former President Trump introduces the concept of a ‘golden share,’ potentially granting the U.S. government 51% ownership. This proposal, aimed at safeguarding national interests, complicates Nippon Steel’s plans for full ownership, which is critical to protecting proprietary technology and ensuring operational freedom. To secure approval, Nippon Steel has significantly increased its investment commitment from $1.4 billion to $14 billion. However, partial ownership could lead to technology leaks and diminished returns. With a June 18 deadline for Biden’s acquisition halt order, Trump’s potential intervention could alter the outcome. Experts suggest Nippon Steel may withdraw, even at the cost of an $800 million penalty, if full ownership is not achievable.
