In June, the White House announced it had acquired a “golden share” in Pittsburgh-based United States Steel Corp. as part of a takeover by Japan’s largest steelmaker, Nippon Steel Corp. The deal gives the U.S. government sweeping rights over U.S. Steel’s governance and business decisions. Here, the Financial Post explains how a golden share works and why this arrangement is a little unusual.
[…]
However, it’s not uncommon for the Committee on Foreign Investment in the United States (CFIUS) to propose mitigation measures if it believes a particular transaction poses a national security risk, said lawyer Anthony Rapa, a partner at Blank Rome who advises companies on cross-border trade issues including CFIUS investment screenings.
Rapa said the spectrum of measures in a national security agreement may include things like requiring a certain number of board members to be U.S. citizens, as is the case with the U.S. Steel deal.
“You could see things like, for example, limitations on access the foreign investor might have to personal data that’s stored in the U.S., (or on) integration of IT systems,” said Rapa. “You could see a requirement to continue to supply to the government, if the U.S. business has been a government supplier over the years.”
[…]
Not all foreign investments fall under CFIUS’s purview, and not all deals require filing for a CFIUS review. Rapa said he doesn’t think the Nippon-U.S. Steel deal will chill foreign investment but could make other countries recalibrate their decision making around how to engage with CFIUS.
“I do think there’s going to be heightened sensitivity to the possibility of CFIUS review and more front-end strategizing and maybe even just leaning in on proactively making filings to try to address these issues head on and not deal with any surprises down the road,” said Rapa.
To read the full article please click here.
“What is a 'Golden Share' — the American Government's Ownership Stake in U.S. Steel?” by Jane Switzer was published in the Financial Post on August 11, 2025.