U. S. Steel(US:X) Mei Ri Jing Ji Xin Wen·2025-09-22 22:39Core 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 increased government intervention in private enterprise and raising concerns about corporate autonomy [1][5][9]. Group 1: Acquisition and Agreements - Nippon Steel completed its acquisition of U.S. Steel in June 2023, after a year and a half of negotiations [6]. - As part of the acquisition, Nippon Steel signed a national security agreement with the U.S. government, committing to invest approximately $11 billion in U.S. Steel by 2028 and to not close or suspend any plants [7]. - The agreement included a provision for the U.S. government to receive a "golden share," granting it veto power over significant corporate decisions [7]. Group 2: Operational Changes and Government Intervention - Nippon Steel planned to close the Granite City plant in Illinois to improve production efficiency, as the plant's two blast furnaces had been idle since 2023 [1][5]. - U.S. Steel notified its 800 workers in September that the Granite City plant would cease operations in November, but this plan was blocked by U.S. Secretary of Commerce and President Trump, who invoked the "golden share" rights [3][5]. - Following the intervention, U.S. Steel announced on September 19 that the Granite City plant would continue operations, marking a significant instance of government involvement in corporate management [5]. Group 3: Legal Actions and Corporate Dynamics - 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 [11]. - The intervention by the U.S. government raises concerns about the implications for corporate governance and the potential risks associated with increased regulatory oversight [9]. Group 4: Market Impact and Future Goals - Since the acquisition, Nippon Steel's stock has risen 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].