Trump approves US Steel Nippon merger
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After a year and a half of government talks, countless regulatory hiccups and last-minute negotiations, Nippon Steel Corp. secured its much-wanted prize late last week when President Donald Trump approved the $14.
Nippon Steel’s $14 billion US Steel deal raises investor concerns over financing, control via golden share, and high acquisition premium.
United States Steel shares rose in premarket trading on Monday after receiving approval from the Trump administration to be sold to Japan's Nippon Steel in a $14.1 billion deal. Shares rose 5% to $54.81.
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The two steel companies list “a golden share to be issued to the U.S. government” among the aspects of what they call a partnership agreement.
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The companies said they had entered into an agreement with the U.S. government to alleviate any national security concerns.
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President Donald Trump would have unique influence over the operations of U.S. Steel under the terms of the investment being made by Nippon Steel. Administration officials over the past few days provided additional insight into the “golden share” arrangement that the federal government made as a condition for supporting the partnership.
TOKYO] Nippon Steel on Saturday (Jun 14) touted a “historic partnership” with US Steel after US President Donald Trump approved a multi-billion-dollar merger. Read more at The Business Times.