The conditions of the acquisition of Nippon Steel: The Trump administration is expected to obtain the "golden stocks" of the US steel industry.

The US government is expected to obtain a "golden share" right from US Steel Corporation, which is one of the conditions for the federal government to approve Nippon Steel's acquisition of US Steel.

According to informed sources, this arrangement will grant the US government the de facto veto power over specific decisions made by companies. Last Friday (May 23rd), Trump announced a "partnership" between Nippon Steel Corp. and United States Steel Corp., which includes a new investment of 14 billion US dollars in the United States.

It is still unclear the specific scope of this veto power, nor is it clear whether the government has made a decision on the $14.1 billion acquisition deal. Two people familiar with the matter disclosed that the deal proposal submitted to the Committee on Foreign Investment in the United States (CFIUS) and the president includes the original all-cash acquisition price of $55 per share and an additional $14 billion in investment.

According to the earliest report by Nikkei, this "golden stock" arrangement will be incorporated into the national security agreement, which is usually an incidental approval condition for the acquisition case by CFIUS. Some people familiar with the matter said that it is still unclear whether gold stocks are actually held or exist as a regulatory restraint mechanism.

Insiders said that although the relevant details are still under negotiation, Trump plans to hold a rally in Pittsburgh on Friday (30th) to package this deal as a "victory" for his tariff policy and American workers. Unless the White House explicitly approves the existing acquisition agreement, US Steel and Nippon Steel will not share the stage with Trump at the event.

Dave McCormick, a Republican federal senator from Pennsylvania and an ally of Trump, confirmed some details in an interview with CNBC aired on Tuesday (the 27th), including an investment of 2.4 billion US dollars in the Mon Valley factory. McCormick described this arrangement as "basically a done deal", in line with Trump's statement last week. However, the White House has not yet explicitly expressed its support for the approval of this acquisition through CFIUS.

McCormick said, "This control structure will be rather special. An American CEO and a board of directors composed of the majority of American directors will be established. A golden share will also be set up. This right will enable the US government to have the right to appoint multiple directors and key decision-making powers in aspects such as production capacity."

Despite Trump's public declaration that "American steel should not be controlled by foreign countries", Nippon Steel still strives to promote this deal that will give it full control. The White House, U.S. Steel and Nippon Steel did not respond to requests for comment on Tuesday.