U.S. Steel shares rose about 5% in premarket trading Monday after President Donald Trump approved its merger with Japan’s Nippon Steel, according to CNBC. Trump issued an executive order Friday allowing the merger to proceed if the companies signed a national security agreement with the U.S. government. U.S. Steel said the national security agreement includes a golden share for the U.S. government but did not specify the powers it grants. Commerce Secretary Howard Lutnick outlined the U.S. government’s rights tied to the golden share in a Saturday social media post. He said it gives the president veto power over relocating headquarters, offshoring, renaming the company, and closing or idling plants. Trump has referred to the U.S. Steel-Nippon transaction as a “partnership” rather than a merger. U.S. Steel confirmed it will become a wholly owned subsidiary of Nippon Steel North America.
