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.”

Also read: Japan Pushes Shipbuilding Revival, U.S. Ties in Focus

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.