U.S. Steel shares jumped 79 percent after President Donald Trump approved the company’s $2.3 billion merger with Japan’s Nippon Steel. Trump’s announcement of this move in May of 2025. He characterized it as a strategic “affiliation” rather than a traditional merger. DOE approval granted under unspecified conditions to safeguard U.S. national security. Now both companies will have to sign a national security agreement with the US government to fulfill these requirements.
Soon thereafter, President Trump issued an executive order that underscored the importance of the transaction. U.S. Steel shareholders will be given $55 per share in cash from Nippon Steel’s investment arm. This financial settlement directly advances the task of restoring U.S. manufacturing competitiveness. All the while, it’s making sure that our national interests are protected.
The executive order goes a step further by adding a new and unusual concept called a “golden share.” Under this provision, the agreement gives the U.S. government significant oversight over much of U.S. Steel’s operations. Most importantly, it gives the government the right to appoint a majority of members of the company’s board of directors. Republican Pennsylvania Senator Dave McCormick made clear just how unusual this level of oversight is. He emphasized that it was the administration’s continuing bipartisan commitment to defend American jobs and expand production capabilities.
It does so by giving the U.S. president a golden share with veto power over every major corporate decision. This is breathtakingly revolutionary in terms of corporate governance and accountability. This includes the ability to block actions such as relocating U.S. Steel’s headquarters, moving operations outside the U.S., renaming the company, and transferring production or jobs abroad. Further, you have veto power over any strategic decisions made to close or idle plants ahead of their expected dates. This authority ensures that any future modifications are in line with our national interest.
The $43 billion merger has been met with opposition from consumer advocates, rural Americans, and many others. Supporters say it will strengthen the U.S. steel industry and create American jobs. Nonetheless, there is worry that such control would pose challenges to the company’s operational flexibility and ability to execute on long-term growth strategies.