Golden Share in US Steel Deal Marks New Era of Public-Private Cooperation

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On June 19, following the completion of Nippon Steel's acquisition of major United States steelmaker US Steel, Chairman Eiji Hashimoto held a press conference. He explained that the US government's possession of a so-called "golden share" — a key factor in the Donald Trump administration's approval — signals a broader shift in the global economy. According to Hashimoto, governments and private companies are entering a new era of strategic cooperation, driven largely by intensifying competition with China.

Reflecting on the year-and-a-half of negotiations with the US government over Nippon Steel's acquisition of US Steel, Hashimoto remarked, "The Trump administration's decisions weren't unique to the United States. They reflect a broader global trend. That's the key lesson I've taken away."

A golden share, a special class of stock that grants veto power over key corporate decisions, has raised concerns among some observers who fear it could constrain US Steel's management following the acquisition.

Proposed by Nippon Steel

Surprisingly, it was Nippon Steel that proposed the golden share, a mechanism granting permanent oversight to the US government. Hashimoto dismissed concerns over the arrangement, calling the commitments "essentially common sense" and insisting they "pose no real harm." On the contrary, he suggested the move could help fast-track future capital investments with the support of the American administration.

*The signboard sits in front of the building that houses Nippon Steel headquarters in Tokyo's Chiyoda district. (©Kyodo*)

The post–Cold War expansion of free trade, especially after China joined the World Trade Organization (WTO) in 2001, delivered enormous benefits to China, which has since become the United States' primary economic rival. Today, China accounts for more than half of global steel production.

Hashimoto argued that as Beijing increasingly favors state-owned enterprises through aggressive industrial policy, Washington's insistence on supervising US Steel signals a broader shift in global economics — away from pure market-driven capitalism and toward a new era of strategic alignment between governments and corporations. Decarbonization, he added, is another challenge that "cannot be solved without public-private cooperation."

'An Extremely Rational Deal'

In addition to the $14.1 billion USD acquisition, Nippon Steel plans to invest a further $11 billion by the end of 2028. While recouping such a massive outlay presents clear challenges, the acquisition cost breaks down to around ¥100,000 JPY ($625 USD) per ton of US Steel's production capacity, a bargain compared to the more than ¥200,000 ($1,250) per ton required to build new facilities in India. Hashimoto called it "an extremely rational deal."

If the golden share avoids becoming a vehicle for excessive political interference and instead serves to deepen US–Japan coordination in countering China, then, despite the uphill road ahead, Hashimoto's goal — "to reclaim our place as the world's number one steelmaker" — may no longer be out of reach.