Nippon Steel and US Steel have officially concluded a contentious $14.9bn merger that has been under the spotlight since its initial announcement in December 2023, Japan Today reports. As part of the revised agreement, the United States government has been granted a “golden share,” a special class of non-economic stock giving it significant oversight over strategic decisions, particularly those impacting jobs and infrastructure.

The original acquisition plan, which involved Nippon purchasing all US Steel shares at $55 apiece—a 40% premium—faced bipartisan resistance. Even former President Joe Biden raised concerns about national security, ultimately blocking the deal before leaving office. However, political winds shifted with Donald Trump’s return to power, leading to the transaction’s revival under a restructured framework.

Under the new terms, US Steel will retain its name and Pittsburgh headquarters. The majority of its board members and senior leaders, including the CEO, must be US citizens. The golden share gives Washington influence over key corporate decisions, such as capital spending and relocation plans, though it carries no financial return or voting rights in daily operations.

The US Securities and Exchange Commission has received notice of the merger’s completion, and US Steel’s shares are being removed from the New York Stock Exchange. While Republican Senator Dave McCormick praised the outcome, the United Steelworkers union remains cautious, promising to enforce Nippon’s commitments through collective bargaining.

This agreement reflects a balance between political concerns and corporate ambition. The golden share offers some protection for national interests, but its effectiveness could weaken if economic pressures grow. The outcome remains uncertain and worth monitoring.

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