U. S. Steel(US:X) Mei Ri Jing Ji Xin Wen·2025-09-22 15:20Core Viewpoint - The U.S. government has exercised its "golden share" rights to prevent Nippon Steel from shutting down a plant owned by U.S. Steel, highlighting the government's increasing control over private enterprises and raising concerns about corporate autonomy [1][6][9]. Group 1: Acquisition and Commitments - Nippon Steel completed its acquisition of U.S. Steel in June 2023, agreeing to a national security pact with the U.S. government that included commitments not to close or suspend operations at U.S. Steel facilities [2][7]. - As part of the acquisition, Nippon Steel pledged to invest approximately $11 billion in U.S. Steel by 2028 and issued a "golden share" to the U.S. government, granting it veto power over significant corporate decisions [7][10]. Group 2: Operational Changes and Government Intervention - Nippon Steel planned to close the Granite City plant in Illinois, which has been idle since 2023, to improve production efficiency [2][4]. - Following the U.S. government's intervention, U.S. Steel announced on September 19 that the Granite City plant would remain operational, reversing its earlier closure plans [6][9]. Group 3: Legal Actions and Historical Context - In January 2023, Nippon Steel and U.S. Steel filed a lawsuit against President Biden, alleging illegal interference in the acquisition process, marking a historic legal action by a Japanese company against a U.S. president [10]. - U.S. Steel, established in 1901, has faced significant challenges, including ongoing losses and a decline in production and market value compared to its peers [10][12]. Group 4: Market Position and Future Goals - Following the acquisition, Nippon Steel's stock price has increased by over 15% in three months, with a market capitalization of approximately 3.42 trillion yen (about 164.5 billion RMB) [7]. - Nippon Steel aims to increase its global production capacity from 65 million tons to 85 million tons through the acquisition, moving closer to its long-term goal of 100 million tons [12].