US will maintain control of key US Steel decisions even with Nippon takeover: senator
As part of an agreement with Nippon Steel, the US government will have veto power over key decisions related to US Steel, according to Republican Senator David McCormick of Pennsylvania.
The deal includes a national security agreement that will require a US CEO, a US majority board, and a golden share that will allow the US government to approve certain board members to ensure production levels are maintained, McCormick told CNBC.
Nippon Steel, US Steel, and the White House have not provided comments on the matter yet. US Steel shares were trading at $53, up 2%, reaching their highest point since the deal was announced.
Under the terms of a proposed NSA term sheet submitted to CFIUS in September 2024, Nippon Steel has committed to ensuring a majority of US Steel’s board members are American, with approval from CFIUS for three independent US Directors.
Since December 2023, Japan’s top steelmaker has been pursuing a $14.9 billion bid to acquire US Steel at $55 a share. Both President Trump and President Biden have expressed opposition to the deal, with Biden formally blocking it in January on national security grounds.
Control Decisions key maintain Nippon Senator Steel Takeover
