"Just when U.S. Steel thought the ink had dried on its new future with Japan's Nippon Steel, the company ran into a political reality check: President Donald Trump's administration and its new "golden share" authority. The golden share-essentially a veto power over certain corporate moves-was a condition for White House approval of Nippon Steel's $14.1 billion acquisition of U.S. Steel in June. The president used this power to halt a planned plant shutdown in Granite City, Ill., The Wall Street Journal first reported on Friday."
"Two weeks ago, U.S. Steel notified the Granite City plant and its 800 workers that operations would cease in November. The company planned to pay the employees, despite closing steel production. But Commerce Secretary Howard Lutnick learned of the plan and called U.S. Steel Chief Executive Dave Burritt, telling the exec he wouldn't allow operations to cease, sources told the Journal. Lutnick added that Trump would use his golden share authority."
The Trump administration imposed a "golden share" veto as a condition for approving Nippon Steel's $14.1 billion acquisition of U.S. Steel, giving the government authority over closures, relocations, salary changes and major operational decisions. U.S. Steel planned to cease steel production at its Granite City, Illinois plant in November while continuing to pay 800 workers. Commerce Secretary Howard Lutnick intervened, contacted CEO Dave Burritt, and said the president would block the shutdown. U.S. Steel reversed course and reported finding a solution to continue slab consumption at Granite City. Union leaders had warned foreign ownership could prompt domestic closures and imports.
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