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Trump, Japan and the era of ‘stick-holder capitalism’
Nippon Steel’s $19 billion deal for US Steel reflects a version of capitalism that does not fully serve the interests of shareholders.
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Nippon Steel's victory was only granted in the era of stick-holder capitalism, says the writer.
PHOTO: REUTERS
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Leo Lewis
After 18 months of bargaining, multiple White House interventions, a presidential election, a snarling lawsuit, a xenophobic rant, two national security reviews and a government golden share, Nippon Steel has finally secured approval to buy US Steel.
The US$15 billion (S$19.3 billion) takeover makes history for many reasons, but perhaps most potently as a marker of era change: It is the first large-scale cross-border deal in the age of “stick-holder capitalism” – which is like stakeholder capitalism but with at least one particularly heavy-handed stakeholder.
