Golden Share to Have Veto Power on Investment Reduction, Transfer of Production, Jobs, U.S. Lutnick Says on Social Media

By Yasuhiro Kobayashi / Yomiuri Shimbun Correspondent

16:24 JST, June 16, 2025

NEW YORK — The “golden share” held by the U.S. government as part of Nippon Steel’s acquisition of U.S. Steel will include veto power on the former reducing its investment and the transfer of production or jobs to outside of the U.S. without consent of the Trump administration, U.S. Secretary of Commerce Howard Lutnick revealed on a post on social media platform X. The terms of the golden share detailed in the post could become a burden on Nippon Steel’s management.

A golden share gives the holder veto power over important management decisions. The specific scope of the U.S. government’s veto power had not been disclosed.

According to Lutnick’s post, Trump or his representative will have veto power over such matters as: Relocation of U.S. Steel’s headquarters from Pittsburgh; Redomicile outside the United States; Change of company name from U.S. Steel; Reducing, waiving or delaying the $14 billion (approximately ¥2 trillion) of investment; Transferring production and jobs outside the United States; Closure or suspension of plants, except for regular temporary suspensions.

Restrictions will also be imposed on employee salaries and overseas raw materials procurement. Lutnick described the golden share as “perpetual,” indicating the golden share will be held even after the Trump administration. On Friday, the Trump administration signed a national security agreement with Nippon Steel and approved the acquisition of U.S. Steel.

Nippon Steel is expected to soon acquire 100% of U.S. Steel’s common stock for $14.1 billion (about ¥2 trillion), after which U.S. Steel will issue a golden share to the U.S. administration. In addition to the acquisition, Nippon Steel is expected to invest about $11 billion in U.S. Steel by 2028, and then increase investment to $14 billion.

In the post, Lutnick said Nippon Steel’s investment into U.S. Steel “will revitalize this strategic and iconic U.S. company and expand steel production in the United States.”