American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Nippon Steel CEO says US golden share in US Steel won’t limit management freedom

by admin June 19, 2025
June 19, 2025
Nippon Steel CEO says US golden share in US Steel won’t limit management freedom

Nippon Steel’s CEO stated on Thursday that the US government’s golden share in US Steel will not impede the Japanese steelmaker from taking any management actions it deems appropriate.

Confirming the agreement to grant the US government unusual power to help conclude the 18-month acquisition battle, Eiji Hashimoto spoke at a Tokyo press conference, according to a Reuters report. 

The statement comes a day after Nippon Steel, Japan’s leading steelmaker, finalised its $14.9 billion acquisition of US Steel.

The US government now holds a non-economic golden share and the president can appoint a board member in US Steel, due to the national security agreement signed with the Donald Trump administration.

“We won’t be constrained in pursuing anything we aim to do,” Hashimoto said, when asked how the golden share would influence management freedom.

He stated that Nippon Steel maintain sufficient managerial freedom, adding that the Japanese company had agreed to the US government’s request to oversee the investment’s execution and had put forth a golden share structure as a direct method to reflect this oversight.

To salvage the deal, the companies made an unusual concession, granting the US government an unprecedented level of control. This came after a difficult approval process, marked by significant political opposition.

Strategic vision and US investment

Hashimoto stated:

We struggled to complete this deal, but our global strategy is starting to take shape.

He also mentioned that the company plans to explore further global expansion.

The US government’s “golden share” in US Steel grants it veto power over several key decisions. These include relocating the company’s Pittsburgh headquarters, transferring jobs internationally, changing the company name, or acquiring a rival business in the future.

“We have spent 2 trillion yen ($14 billion) to acquire US Steel…We have no intention of relocating its headquarters or shifting production or jobs overseas,” Hashimoto said.

Under the terms of the agreement with the administration, Nippon Steel is obligated to invest approximately $11 billion in capital within the US by 2028.

Hashimoto stated that he saw no problem with the requirement, as the company planned to increase investments beyond its current scope. 

Future growth

He added that the Trump administration’s policy change towards higher tariffs had elevated the strategic importance of the US Steel acquisition.

Hashimoto told reporters:

This deal is not only a necessary and effective strategy to restore our company to the number one position globally, but also the only path for US Steel to revitalize and grow.

Nippon Steel’s Vice Chairman, Takahiro Mori, who was the lead negotiator for the deal, stated that the company is evaluating various financing options, including a potential capital raise, to support its investment strategies in the US.

“The increased leverage from acquisition debt remains a clear credit negative,” Roman Schorr, senior analyst at Moody’s Ratings, was quoted in the report. 

The post Nippon Steel CEO says US golden share in US Steel won’t limit management freedom appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Hang Seng index breaks key support as risk-off mood grips markets: what’s next?
next post
BYD stock price forecast as its European market share gains steam

Related Posts

Affirm secures largest-ever funding: what it means for...

December 14, 2024

Jim Cramer names his top 4 stocks that...

July 11, 2025

Inox Green Energy, Premier Energies and six other...

January 21, 2025

Top Chinese stocks to watch this week: PDD,...

May 25, 2025

Memeinator vs Memeland: here’s why MMTR trumps its...

September 10, 2024

Reece James’ net worth in 2025: how much...

March 25, 2025

XPeng stock price analysis: Is this Nio rival...

May 19, 2025

20% of South Korean officials hold crypto worth...

March 27, 2025

After Klarna IPO, is UK’s crypto-friendly neobank Revolut...

November 14, 2024

Top FTSE 100 shares to watch: AAL, ABDN,...

February 28, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Saudi Arabia poised to raise September crude prices to five-month highs

      July 28, 2025
    • From $824 to over $1,300: how soaring rents are consuming American paychecks

      July 27, 2025
    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025

    Categories

    • Business (3,530)
    • Investing (2,677)
    • Latest News (2,024)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved