Trump used golden share to block US Steel’s production halt plan: WSJ
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The US government was granted a golden share that gives it veto power over key management decisions as part of the takeover deal.
PHOTO: EPA
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The US government blocked United States Steel’s plan to shut down production at a plant in the Midwest, resorting to its new authority over the company, which has been acquired by Nippon Steel, The Wall Street Journal reported on Sept 19.
As part of the US$14.1 billion (S$18 billion) takeover deal of the iconic yet struggling American steelmaker by the Japanese company that was finalised in June, the US government was granted a golden share that gives it veto power over key management decisions.
According to the newspaper, US Steel notified workers in Granite City in the state of Illinois two weeks ago that plant operations would cease in November. Nippon Steel said it would continue to pay the mill’s nearly 800 employees despite the closure.
But US Commerce Secretary Howard Lutnick reportedly called US Steel Chief Executive Officer David Burritt and told him that the administration would not allow operations to cease, and President Donald Trump would invoke the golden share authority over plant operations.
US Steel therefore reversed its plan and said that Granite City Works will continue rolling steel slabs into sheet steel, according to the WSJ.
US Steel told Kyodo News that the company is “pleased to have found a solution to continue slab consumption at Granite City,” noting that its goal was to “maintain flexibility”.
An official of Nippon Steel declined to comment on the production halt plan and the involvement of the US government.
“We are not in a feud with the US administration,” the official said.
The takeover deal, first announced in late 2023, became a hot-button issue in the 2024 US presidential election, as Pennsylvania, where US Steel is headquartered, is a key battleground state.
Mr Trump, who took office in January 2025, reversed his initial opposition and gave approval in June
Along with the takeover deal, the companies also entered into an agreement with the US government for the protection of US national security, with Nippon Steel agreeing to make approximately US$11 billion in new investments in US Steel by 2028. KYODO NEWS
