President Trump’s mixed references and political plays are held in the process of taking a cross -border teacher and raising red flags for foreign companies.
An attempt by Nippon Steel Corp, throughout the year and a half, has acquired another development late last month when President Trump unexpectedly announced on social media a “great agreement” to finally conclude the deal. But if we are now in the final action of the drama, that was just a scene 1.
The scene came 2 and went on June 6, when Trump missed what was supposed to be a final date to agree to or reject a deal. The scene is now expected 3 before June 18, the date on which the two companies agreed to complete the deal – unless they decide to extend it.
Whether the final curtain in the Cliffhanger Drama is still known again. Meanwhile, the interested parties of steel workers and their families to American steel shareholders to Pennsylvania officials elected are considering a variety of critical details but are still in the air. Other non -American companies require some warning lessons about the search for acquisitions in the Trump era.
With an executive order in January, outgoing president Joe Biden prohibited the sale of US steel, which would have been one of the largest American acquisitions ever by a Japanese company, on the basis of national security. Then, in April, in a very unusual step, Trump ordered the committee with foreign investment in the United States to try again to make a recommendation regarding the corner of the NIPPON and USSEEL. CFIUS failed to agree on a recommendation last fall and kick the decision until the White House Biden.
Trump received the committee’s recommendation on May 21, which gave him 15 days – until June 6 – to decide Biden’s executive order. He did not do so, although his post on social media, and the data I made in a 90 -year -old march in the United States of America, indicates that the Irvin factory outside Pittsburgh indicated that he was ready to do so.
Instead, the White House claimed that he only asked CFIUS guidance, not a recommendation, and that the real final lines are June 18. Biden, in his executive order, gave Nippon Steel and US Steel until then abandoning their deal, which means that he pushes it to that, he must conclude with that date.
What the president did not do is to retract his claim that the historical deal was within reach.
The United States will continue to be controlled by the United States, “as announced in the assembly; At least.
“You will not worry about it,” the president emphasized a society that relies on the steel for generations. “They will be here for a long time.”
The stakeholders left the scratch of their heads
Trump’s statement left steel workers, shareholders, analysts, and even executives in Nippon Still, who are trying to connect some important loose parties. The published reports indicated that the acquisition price of $ 55 per share was not shook hands in December 2023, which had not changed, and that the deal would remain a 100 % acquisition, as Nippon Steel was always preferred: not “investment”, as Trump suggested earlier.
But the biggest ambiguity involves the actual control structure that the deal will put in the United States.
Republican Senator David McCromic of Pennsylvania told reporters in the wake of Trump’s statements that the company will continue to own an American executive director and the American majority directors and that the American government will hold a “golden share”, which means that it will have the right to agree to some members of the board of directors. This, in turn, “will allow the United States to ensure that production levels and such things are not cut off.”
No physical terms of steel steel conversations from the embarrassing Nippon-Us showed how to create this mechanism.
“Golden Participation” generally means a group of shares that allows the party that holds them to all other shareholders. But such arrangements, although they are common in Germany and some other parts of Europe, are “not typical” in foreign acquisitions of American companies, as Antonia Tzinova, leader of the industrial security team and the Hollande and Knight Industrial Security Company, and its resistance in general by the Introduction.
If the parties have something other than the classic golden participation in mind, they have not been revealed – this is an additional mystery. Trump said he had not yet seen an official deal, although he received a report from CFIUS. If a new deal is agreed, Tzinova indicates that USEL has a legal commitment to detect it to its shareholders.
Union officials say that the United Nations, which represents American steel employees.
“President Trump or Senator McCromic did not provide any details about the” planned partnership “or the nature of” controlling the United States of America “following the closure of the deal,” the federation official said in a company note – although these details could affect the United States’ contract with the Union.
Difficult lessons for foreign companies
The two companies continued to sell gently for a year and a half; As if to emphasize the urgency of a Japanese product to obtain US operations, Trump announced shortly after his statements in Mons Valley that Washington would double the definitions of imported steel. But Tuzinaova has joined the deal with an economic logic is more difficult in the current era.
Nothing about the first Nippon Steel suggestion to buy Steel Us was very unusual, as you notice, just its timing. Coming when the presidential electoral cycle was already underway, the deal soon became a political issue. Lesson for non -United States: Avoid announcing a deal during the election year.
Tzinova adds, but Nippon Steel could have helped in his case, if he had pressed significantly and has been contacted with all the stakeholders concerned more. The stakeholders will include these union and its members, and local companies that are the American steel are an economic broadcaster and state governments. The head of steel workers, United David McClic, clearly after Trump’s statements that Al -Ittihad, which strongly opposed the sale, was not included in the two companies’ discussions with the administration.
This is another lesson that will have to learn to move forward, as Tzinova recommends.
