Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms

WASHINGTON (AP) — President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a “national security agreement” submitted by the federal government.

Trump's order didn’t detail the terms of the national security agreement.

But the iconic American steelmaker and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a “ golden share " — essentially veto power to ensure the country's national security interests are protected against cutbacks in steel production.

“We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership," the two companies said. "This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.”

The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said.

“The partnership is expected to be finalized promptly,” the statement said.

The companies offered few details on how the golden share would work, what other provisions are in the national security agreement and how specifically the $11 billion would be spent.

White House spokesman Kush Desai said the order “ensures U.S. Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America’s national and economic security.”

James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government.

They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said.

The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said.

U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday.

Nippon Steel in late 2023 offered nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden’s presidency.