U.S. Steel (X) Stock Climbs as Trump Administration Signals Deal Approval
Views : 75
Update time : 2025-05-28 16:11:48
Nippon Steel's acquisition of U.S. Steel (X) moved significantly closer to completion as details emerged about a unique oversight mechanism that grants the U.S. government veto power over strategic corporate decisions. Under a so-called "golden share" arrangement described by Senator David McCormick, U.S. authorities will have substantial influence, including approval over key board members and control over potential reductions in steel output. The news lifted investor sentiment, sending U.S. Steel shares up 1.6% to close near recent highs at $52.84. This agreement, negotiated through the Committee on Foreign Investment in the U.S. (CFIUS), represents an unprecedented move in ensuring American interests in critical industries. The deal mandates that the majority of U.S. Steel’s board remain American, including three independent directors explicitly approved by the U.S. government. This measure addresses lingering national security concerns that had previously led former President Joe Biden to block the merger, arguing that essential American infrastructure must remain domestically controlled.
