US Steel was barred from selling an Illinois plant this fall as the White House threatened to use a so-called golden share authority awarded to President Donald Trump when the company completed its $14.1B takeover deal with Nippon Steel (OTCPK:NPSCY) (OTC:NPSTF), The Wall Street Journal reported.
Commerce Secretary Howard Lutnick is said to have acted promptly when he learned that two weeks ago, US Steel informed its workers in Granite City, Ill., that it would wind down the plant’s operations in November.
According to a person familiar with the matter, Lutnick called US Steel CEO Dave Burritt to say that the White House would not permit the plant’s closure and President Trump would invoke his so-called golden share authority over its operations.
Trump was given the authority when the U.S. government received a golden share under a national security agreement reached in relation to Nippon Steel’s (NSTF) acquisition of US Steel in June.
The agreement contained multiple provisions that gave Trump and future U.S. administrations the right to exercise veto power in plant closures, product exports, and other operational changes.
US Steel said on Friday it has rolled back its plans, and its Granite City Works plant would continue to operate. “Our goal was to maintain flexibility, and we are pleased to have found a solution to continue to slab consumption at Granite City,” WSJ reported, quoting a company statement.
Lutnick’s Involvement is the latest example showing the Trump administration’s growing influence in the private sector. In August, Intel (INTC) received an $11.1B investment from the U.S. government, and this week, rival Nvidia (NVDA) followed up with a $5B investment in the company as part of an agreement to co-develop PC and data center chips.