One National Security Lawyers said on Monday that the Trump administration said unusual steps as part of a deal as part of a deal as part of a deal as part of a deal to give itself a golden stake in US steel, which can remove foreign investors in American companies.
Commerce Secretary Howard Lutnik announced on Saturday, “President Trump won a permanent golden part as part of Nippon Steel’s OS Steel’s acquisition,” listening to a fleet of corporate decisions that the trump administration will now end the veto power.
To hit the US Steel shares on a 5% to hit $ 54.85 per share on Monday, Nippon Steel’s $ 55 per share came to the proposal price, as investors said the Japanese firm’s bid of $ 14.9 billion for the struggling company would soon reach the finish line.
But the Trump administration had an unusual option to include the golden shares in the National Security Agreement, and according to the National Security Advocate Joshua Grinkspat with Wilson Sonsini, will caution foreign investors.
“This leads to the question,” Am I going to get what I bought? Is I really getting control over this property? ” He said.
An American official left the door open for the Trump administration, which again required a golden share, but rarely, saying, “The deal should not be seen as any example that will affect the vast majority of M&A activity across the border.” The officer spoke on the condition of anonymity as he was not authorized to speak publicly.
Nippon Steel refused to comment. The US Steel, White House, Commerce and Treasury Department, which leads the committee on foreign investment in the US, investigating foreign security for national security risks, did not immediately respond to the requests of the comment.
‘Risky and unprecedented’
The Trump administration on Friday gave a green light to the merger through an executive order and a signed agreement to accept national security concerns, which stops the 18 -month effort.
But Golden Share President Donald Trump suggested that American people were suggested to give 51% stake in the American firm struggling as part of the acquisition.
In his Saturday’s post, Lutnik said that this share would prevent companies from reducing or delaying $ 14 billion in promised investments, production or jobs outside the United States or stopping the plants before some time limit, without the President’s consent.
This part also gives the government a veto on the possible transfer of the headquarters of the headquarters of American Steel from Pennsylvania to the government, which transfer jobs abroad, a name change, as well as “employee salary, anti-dumping pricing, raw materials and other security related to sourcing,” said.
That power is honored through a part of the favorite stock, called Class G for “Gold”, and said by a member of the board directly appointed by the President, the American officer said confirming a report of the New York Times.
The lawyers consulted by the Reuters said that some board members should be approved by the committee that it was not out of the ideal for CFIUS in an NSA. But a new approach appears to be a new approach to the President.
“A golden share approach is both risky and unprecedented,” Jim Cicrato said, a former Treasury and Commerce Officer, saying that the United States needs to do something similar to Beijing to approve the investment of an American company in a Chinese firm, if the United States will cry dishonestly. “Trump’s meritorious shows uncertainty for global investors and sets an example that can complicate deals across the border.”
Even before Trump’s involvement, companies gave significant rights to the US government. In September 2024, in the term sheet of a National Security Agreement proposed to CFIUs and received by Reuters, Nippon Steel said that most of American steel board members would be American, and three of them – known as “independent American directors” – will be approved by CFIUS.
“US steel can reduce production capacity if and only if it is approved by the majority of independent US directors,” the term sheet said, saying that the core American managers will be American citizens.
