Fact Check: "Trump controls a 'golden share' in U.S. Steel's sale to Nippon Steel."
What We Know
The claim that Donald Trump controls a "golden share" in U.S. Steel's sale to Nippon Steel is substantiated by multiple sources. The "golden share" arrangement allows Trump to exert significant influence over U.S. Steel's operations and decisions. This arrangement was formalized in an amended corporate charter filed with the Securities and Exchange Commission (SEC), which specifies that Trump holds veto power over critical business decisions, such as changes to the company's name, relocating its headquarters, and significant financial decisions, including the timing of a $10.8 billion capital investment (AP News, CNBC).
The golden share mechanism is not unique to this situation; it has been used globally to ensure government oversight in strategically important industries. For instance, Todd Tucker from the Roosevelt Institute noted that this type of arrangement is common in various countries, where governments retain a golden share to maintain control over key industries (NPR).
Analysis
The evidence supporting the claim is robust, with multiple credible sources confirming that Trump indeed holds a golden share in U.S. Steel, which gives him substantial control over the company. The arrangement was a condition for the merger with Nippon Steel, reflecting a strategic decision to address national security concerns (AP News).
The reliability of the sources is high; both NPR and CNBC are reputable news organizations that provide detailed reporting on corporate governance and national policy. The information from the SEC filing adds a layer of official documentation that supports the claim. However, it is worth noting that the implications of this arrangement have raised concerns about the extent of governmental control over private enterprises, as highlighted by legal experts (CNBC).
Critically, while the golden share provides Trump with significant power, it is also stated that this power will transition to the Treasury and Commerce Departments after his presidency, suggesting a continuity of governmental oversight rather than personal control (CNBC). This aspect is essential to consider when evaluating the long-term implications of the golden share arrangement.
Conclusion
Verdict: True
The claim that Trump controls a "golden share" in U.S. Steel's sale to Nippon Steel is accurate. The arrangement grants him substantial veto power over significant corporate decisions, which is confirmed by multiple credible sources and official documentation. The golden share serves as a mechanism for the U.S. government to maintain influence over a strategically important industry, reflecting broader national security interests.
