TOKYO (Reuters) -There is a small gap between Nippon Steel and the U.S. government over the authority of a golden share tied to its acquisition of U.S. Steel, the Japanese steelmaker’s president said on Thursday.
Last week, the Wall Steet Journal reported that the administration of U.S. President Donald Trump had blocked U.S. Steel’s plan to shut down production at one of its plants in Illinois, flexing its so-called golden share authority, citing a person familiar with the matter.
“There is minor difference in views regarding the national security agreements and the authority of the golden share,” Nippon Steel President Tadashi Imai told reporters when asked about the report.
He did not elaborate, but said the recent U.S. move reflected the Trump administration’s policy of protecting domestic production bases and jobs across various sectors.
“Through the execution of concrete investment projects, we aim to steadily enhance US Steel’s competitiveness and advance our partnership,” Imai said.
Japan’s top steelmaker closed its $14.9 billion acquisition of U.S. Steel in June, agreeing to give Washington unusual power to help end its 18-month battle to reach a deal. The national security agreement with the Trump administration granted Washington a non-economic golden share.
U.S. Steel said on Wednesday its board approved the next phase of capital investments worth $300 million, part of Nippon Steel’s $11 billion commitment.
About $100 million will go toward a slag recycler at the Edgar Thomson Plant in Pennsylvania, and about $200 million toward upgrades to the hot strip mill at Gary Works in Indiana, the company said, adding the projects aim to modernize operations and strengthen capabilities.
Nippon Steel plans to announce a new mid- and long-term business strategy for U.S. Steel as well as for Nippon Steel by the end of this year, Imai said.
(Reporting by Yuka Obayashi; Editing by Lincoln Feast.)
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