Photo/Illutration A U.S. Steel plant in Pennsylvania (Asahi Shimbun file photo)

WASHINGTON--A “golden share” to be held by the U.S. government as part of Nippon Steel Corp.’s deal to buy out U.S. Steel will give Washington extensive veto power over key management decisions at the company.

Among other things, it will prevent the Japanese company from relocating the headquarters of the iconic U.S. steelmaker from Pittsburgh, or change its name.

In a June 14 post on the social media platform X, U.S. Commerce Secretary Howard Lutnick disclosed details of the agreement between Nippon Steel and the U.S. government over the Japanese company’s acquisition of U.S. Steel.

This followed President Donald Trump’s decision the previous day to approve Nippon Steel’s bid to turn the U.S. rival into a wholly owned subsidiary.

Japan’s top steelmaker will purchase all common shares in U.S. Steel for about $14 billion (2 trillion yen). The Tokyo-based company also said it will issue a special share that allows its owner to outvote all other shareholders on certain management decisions to the U.S. government.

Quite what control this golden share will entail was not made clear, however.

Lutnick listed things that the “perpetual” share will enable the U.S. president to “prevent” from occurring, such as relocating U.S. Steel’s Pennsylvania headquarters; changing the company’s name; reducing, waiving or delaying Nippon Steel’s $14 billion investment in U.S. Steel; and transferring production or jobs outside the United States.

He said Nippon Steel’s investment will “revitalize this strategic and iconic U.S. company and expand steel production in the United States.”

Trump has insisted that U.S. Steel remains under American control even after Nippon Steel makes its investment in the company founded in 1901.

By detailing the veto power of the golden share, Lutnick made clear that Nippon Steel will be expected to maintain U.S. Steel’s production capacity and workforce in the United States.

Trump has frequently said Nippon Steel will make its $14 billion investment within 14 months.

Lutnick effectively called on the Japanese steelmaker to adhere to the schedule by citing “delaying” the investment as one of the things that can be prevented with the golden share.

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