Photo/Illutration A direction sign for Nippon Steel Corp.’s shareholders meeting in Tokyo on June 24 (Seisaku Yamamoto)

Nippon Steel Corp. overrode resistance from U.S. President Donald Trump and turned U.S. Steel into a wholly owned subsidiary, the Japanese company’s chief executive said.

Eiji Hashimoto told a shareholders meeting on June 24 that Nippon Steel stood firm on its original plans to acquire all shares of the storied American steelmaker.

“Trump said he did not want to approve a 100-percent ownership and called for lowering our proposed share to 49 percent or less, if possible, but we eventually prevailed,” said Hashimoto, who is also chairman.

Nippon Steel acquired all common shares in U.S. Steel for about $14 billion (2 trillion yen) on June 18.

In winning approval from the Trump administration, Japan’s top steelmaker concluded a national security agreement with the U.S. government and decided to issue a “golden share,” which will give Washington extensive veto power over key management decisions.

When a shareholder asked if Nippon Steel will be tied hand and foot by the U.S. government, Hashimoto said the company would not have gone ahead with the buyout if the deal terms had allowed Washington to “call the shots.”

Up to nine members sit on U.S. Steel’s board of directors. An external director will be appointed by the U.S. government, and the appointments of two others must be approved by Washington.

Still, Hashimoto said Nippon Steel will be able to secure sufficient freedom in management, noting that a majority of U.S. Steel directors will be nominated by the Japanese company.

The annual meeting attracted 1,257 shareholders, about 80 percent more than last year.

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