Investing.com -- The U.S. government may acquire a stake in U.S. Steel as part of a proposed deal that would allow Japan’s Nippon Steel to take over the American steelmaker, according to a report by Kyodo on Tuesday.

The report suggests that the U.S. government could hold a "golden share" in U.S. Steel. This special type of share would provide Washington with the authority to veto significant management decisions. This idea has been proposed as a potential component of the acquisition deal between U.S. Steel and Nippon Steel.

This development comes as Nippon Steel, one of Japan’s leading steel manufacturers, is seeking to acquire U.S. Steel. The potential acquisition would further expand Nippon Steel’s global footprint. The possible involvement of the U.S. government in the deal indicates the strategic importance of U.S. Steel and the steel industry in the country’s economy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.