Sen. David McCormick (R-Pa.) said Tuesday the U.S. government will have a golden share in Nippon Steel’s acquisition of US Steel, giving it power over some of the decision-making.
“It’s a national security agreement that will be signed with the U.S. government,” McCormick told CNBC’s “Squawk Box.”
“There’ll be a golden share that will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren’t cut,” he added.
The arrangement, lauded by the Trump administration as a “partnership,” would pour $2.4 billion into company operations in Pittsburgh alone, McCormick said.
President Trump said the deal would add 70,000 jobs nationally and add $14 billion to the U.S. economy as part of the takeover.
“They wanted an opportunity to get access to the U.S. market — this allowed them to do so and get the economic benefit of that,” McCormick said of Nippon. “They’ve negotiated it, it was their proposal.”
Trump and former President Biden both ruled out the Japanese corporation’s complete acquisition of US Steel, citing potential harm for blue collar workers and threats to national security.
Biden blocked the merger from happening in early January following a yearlong review of the potential acquisition from the Committee on Foreign Investment in the U.S.
Trump received a fresh report from the committee in April, one month prior to announcing the two company’s partnership, telling reporters on Sunday US Steel will remain “controlled by the U.S.A.”