Nippon Steel Deal Ensures U.S. Control in $14B U.S. Steel Buyout

A deal that would enable Japan-based Nippon Steel to invest in U.S. Steel would ensure an American CEO, a majority of U.S. board members, and U.S. government approval over specific business duties, U.S. Sen. David McCormick said Tuesday. Four days after President Donald Trump indicated that a deal on a "partnership" was imminent to settle Nippon Steel's roughly $15 billion offer to purchase the venerable American steelmaker U.S. Steel, which has been banned on national security grounds, the Pennsylvania senator made an appearance on CNBC.

Key Highlights:

• Nippon Steel Deal Ensures U.S. Control, CEO, and Board Majority
• Trump: U.S. Steel Will Remain Under American Control Despite Deal
• McCormick Backs "Golden Share" for U.S. Veto in Steel Agreement

​Following his statement Friday, Trump on Sunday told reporters that U.S. Steel will be “controlled by the United States, otherwise I wouldn’t make the deal” and that “it’s an investment and it’s a partial ownership, but it’ll be controlled by the U.S.A.”

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McCormick described the U.S. government’s veto as a “golden share” and suggested that the idea was Nippon Steel’s proposal. In addition to the purchase proposal, Nippon Steel progressively raised the amount of money for a new investment it was promising to invest in U.S. Steel in an effort to appease American officials during a national security evaluation. According to Trump, McCormick, and state senator Kim Ward of Pennsylvania, who valued the purchase at $28 billion that sum now amounts to $14 billion.