• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

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

by June 19, 2025
by June 19, 2025

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 comment
0
FacebookTwitterPinterestEmail

previous post
Hang Seng index breaks key support as risk-off mood grips markets: what’s next?
next post
Here’s why the stalling Barclays share price could hit 400p

Related Posts

Banijay to acquire majority stake in Tipico creating...

October 28, 2025

Cathie Wood warns investors to brace for correction,...

October 28, 2025

European markets open mixed on Tuesday: FTSE opens...

October 28, 2025

Entry and Midnight Foundation launch integration to unite...

October 28, 2025

Elon Musk challenges Wikipedia with Grokipedia, his AI-driven...

October 28, 2025

Novartis shares fall as profit lags estimates; downside...

October 28, 2025

Nio stock price forecast: is it safe to...

October 28, 2025

IBEX 35 Index has soared: top Spanish stocks...

October 27, 2025

Australia commits A$83.5 million to boost cyber resilience...

October 27, 2025

Honda joins India’s clean energy drive with OMC...

October 27, 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.

Recent Posts

  • Understanding Medicaid

    October 28, 2025
  • Colonel Harwood’s Legacy: The Engineer Who Built an Economic Institution

    October 28, 2025
  • Digi International Announces Digi XBee 3 Global LTE Cat 4 Cellular Modem for IoT Applications

    October 28, 2025
  • Trumponomics Is Pushing Young Voters Into Socialism

    October 28, 2025
  • Banijay to acquire majority stake in Tipico creating a European gaming powerhouse

    October 28, 2025
  • Cathie Wood warns investors to brace for correction, backs this unlikely winner

    October 28, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,033)
  • Editor's Pick (297)
  • Investing (185)
  • Stock (2,064)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Top 4 quantum computing stocks to buy...

June 25, 2025

Rolls-Royce wins SMR bid as UK launches...

June 10, 2025

European markets open: Stoxx 600 gains 0.3%;...

June 4, 2025