HARRISBURG, Pa. (AP) 鈥� President will control the so-called 鈥済olden share鈥� that's part of the national security agreement under which he allowed Japan-based Nippon Steel to buy out iconic American steelmaker U.S. Steel, according to disclosures with the U.S. Securities and Exchange Commission.
gives the president the power to appoint a board member and have a say in company decisions that affect domestic steel production and competition with overseas producers.
Under the provision, Trump 鈥� or someone he designates 鈥� controls that decision-making power while he is president. However, control over those powers reverts to the Treasury Department and the Commerce Department when anyone else is president, according to the filings.
The White House responded in a statement that the share is 鈥渘ot granted to Trump specifically, but to whoever the president is" when asked why Trump will directly control the decision-making and why it goes to the Treasury and Commerce departments under future presidents.
Still, the wording of the provision is specific to Trump.
It lists what decisions cannot be made 鈥渨ithout, ... at any time when Donald J. Trump is serving as President of the United States of America, the written consent of Donald J. Trump or President Trump鈥檚 Designee鈥� or 鈥渁t any other time, the written consent of the CMAs,鈥� a contractual term for the Treasury and Commerce departments.
Nippon Steel's nearly $15 billion buyout of Pittsburgh-based U.S. Steel became final last week, making U.S. Steel a wholly owned subsidiary.
Trump has sought to characterize the acquisition as a "partnership" between the two companies after he at first vowed to 鈥� as former President did on his way out of the White House 鈥� before after he became president.
The became effective June 13 and is between Nippon Steel, as well as its American subsidiary, and the federal government, represented by the departments of Commerce and Treasury, according to the disclosures.
The complete national security agreement hasn't been published publicly, although aspects of it have been outlined in statements and securities filings made by the companies, U.S. Steel said Wednesday.
The pursuit by dragged on for a year and-a-half, weighed down by national security concerns, opposition by the United Steelworkers and in the premier battleground state of Pennsylvania, where U.S. Steel is headquartered.
The combined company will become the world鈥檚 fourth-largest steelmaker in an industry dominated by Chinese companies, and bring what analysts say is Nippon Steel鈥檚 top-notch technology to U.S. Steel鈥檚 antiquated steelmaking processes, plus a commitment to invest $11 billion to upgrade U.S. Steel facilities.
The potential that the deal could be permanently blocked forced Nippon Steel to sweeten the deal.
That included upping its capital commitments in U.S. Steel facilities and adding the golden share provision, giving Trump the right to appoint an independent director and veto power on specific matters.
Those matters include reductions in Nippon Steel鈥檚 capital commitments in the national security agreement; changing U.S. Steel鈥檚 name and headquarters; closing or idling U.S. Steel鈥檚 plants; transferring production or jobs outside of the U.S.; buying competing businesses in the U.S.; and certain decisions on trade, labor and sourcing outside the U.S.
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Marc Levy, The Associated Press
