According to Nikkei Asia, on June 12 local time, US President Trump said that after Nippon Steel Corporation acquires US Steel Corporation, the US government will hold the company's "golden share", and emphasized that this arrangement would give the government management control over the company.
On that day, when Trump talked to reporters at the White House about tariffs and car regulations, he briefly mentioned the acquisition plan of Nippon Steel to US Steel. "We have a golden share controlled by me, or by the president," Trump said.
"I am a little worried now, no matter who the future president is, but the golden share can give you complete control," he continued. "Americans will hold 51% of the equity."
Finished rolled products produced at US Steel's plant in Pennsylvania. Nikkei Asia
A "golden share" is a type of share that has veto power over important management decisions. Even holding just one share, the holder has voting rights that exceed those of all other shareholders in certain situations, which allows them to cancel the appointment or dismissal of directors.
According to reports in late May, Nippon Steel was considering issuing a "golden share" to the US government. By using the "golden share", Nippon Steel could turn US Steel Corporation into its wholly-owned subsidiary while meeting Trump's requirement for the US to retain management control.
Trump welcomed the cooperation between Nippon Steel and US Steel, but he has consistently insisted that the company must remain "American." He originally expected to announce his final decision on the Nippon Steel acquisition case before the deadline of June 5, but it has not been announced so far.
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Original article: https://www.toutiao.com/article/7515210178674672147/
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