Donald Trump gets ‘golden share’ in Nippon-US Steel acquisition: What it means, what are the provisions, explained

At the beginning of this month, the Japanese steel giant Nippon Steel announced that it gained conditional approval from Donald Trump administration because of the purchasing of the United States of United States of America (US Steel) of $ 14.1 billion.

Nippon Steel accepted a national security agreement proposed by the US government, as a part of it, the US government gave the US government a “gold share olarak, one of the largest steel manufacturers under Donald Trump.

Bloomberg had previously reported that the gold share did not contain a self -shares in the company for the US government, but its details were not yet available.

Now, applications with the US Securities and Stock Exchange Commission (US Sec) show what this golden stock service requires, how it works and how the details are expressed.

What is ‘Share Gold’?

Generally, a golden share means that the owner (in this case, the US government), according to the Bloomberg report (Nippon Steel, US Steel) means that they achieve veto voting power through some changes that may want to make.

In addition, the US Trade Secretary Howard Lotnick made the concept of social media, this gold share from the US company Pittsburgh, the US steel name to change the name of the United States to prevent the closing of plants in the United States without consent, he said.

What does this mean? What does the judgment allow?

According to the EP report, this provision gives the US President:

• A Board of Directors Member Assignment Power and
• Make a say in the decisions of the company that influences domestic steel production and competition with overseas producers.

Under the provision, Trump-or to controls the decision-making power when he is a president he has determined. However, according to the applications, the control over these powers returns to the Treasury Department and Trade Department when another president becomes president.

When the White House asked why Trump would directly control the decision -making and why he caused treasury and trade departments under future presidents, the share replied, “Trump was not given to Trump, but the President was not given to whom he was not given”.

Nevertheless, the expression of the provision is specific to Trump.

At any time when Donald J. Trump served as the President of the United States, which decisions cannot be made, the written consent of the appointed consent of Donald J. Trump or President Trump’s appointment ”or ı the written consent of the CMAs at any time”, a period attached to the contract for the Treasury and Trade Departments.

Nippon Steel’s purchasing US Steel based on a Pittsburgh -based $ 15 billion was final last week and made us a fully owned subsidiary.

After promising to block the agreement at first, Trump tried to characterize it as a “partnership” between the two companies before changing his mind after changing his mind – as former President Joe Biden did when he left the White House.

The National Security Agreement entered into force on June 13 and between Nippon Steel and the Federal Government represented by the American subsidiary and trade and treasury departments.

US Steel said on Wednesday that the full national security agreement was not explained to the public, and that it was mentioned in the statements made by companies and in the securities asset files.

Nippon Steel’s search, national security concerns, opposition by United Steel Workers, and the headquarters of Pennsylvania’s leading Battleground state were weighed by the presidential policy.

The United Company will be the world’s fourth largest steel manufacturer in a industry dominated by Chinese companies, and will bring Nippon Steel’s first -class technology to the US Steel’s antique steel production processes and the commitment to invest $ 11 billion to raise US steel facilities.

The permanent prevention of the agreement forced Nippon Steel to sweeten the agreement.

This included raising capital commitments in the US steel plants and adding gold sharing, giving Trump the right to assign an independent director and veto power on certain issues.

These issues include discounts on Nippon Steel’s capital commitments in the National Security Agreement; Changing US Steel’s name and headquarters; Closing or idle of US steel plants; Transferring production or transmission of jobs outside the US; To buy competitors in the USA; and some decisions on trade, labor and supply outside the USA

(AP, with Bloomberg inputs)