The American government plans to participate in the planned “partnership” between US Steel and its Japanese Japanese rival Steel, Senator Dave McCormick, a Republican from Pennsylvania, said on Tuesday on CNBC.
Mr. McCormick said that in the context of a national security agreement that companies will sign with the Trump administration, the federal government would obtain a so-called “gold share” in the agreement. Consequently, the administration will have a say that is appointed to the company’s board of directors in the United States.
Friday, President Trump said he favored An “investment” of $ 14 billion by the Japanese giant in US Steel, without disclosing details of ownership. The president had previously declared that he opposed the outright acquisition by Japanese Steel of the American manufacturer. Us Steel has its registered office in Pennsylvania, a politically important state which voted for Mr. Trump in 2024.
Mr. McCormick did not develop the operation of the arrangement and the companies have not revealed any details of the investment.
Golden shares generally refer to the special challenges that the government has in companies that are in difficulty or in particular need of attention from the government, such as General Motors during the 2008 financial crisis. The United States is generally not taking stocks of listed companies. When this is the case, it is generally because it has provided a certain type of financial aid, such as bailout, and wants to protect the money from taxpayers.
The arrangement has aroused immediate concern.
“It is not logical for the United States to participate in it,” said Douglas Holtz-Eakin, president of the American Action Forum, in an interview. The conservative group criticized the Biden administration for having increased national security objections to the takeover of Japanese, arguing that he posed No risk for the United States.
