US Steel shares Rally if Trump Nippon take over with unique government 'Golden Share'

USA Shares jumped on Monday after President Donald Trump approved his controversial merger with that of Japan Nippon Steel.

US Steel shares closed about 5% higher at $ 54.85.

Trump issued an executive order on Friday, so that US Steel and Nippon can complete their merger as long as they signed a national security agreement with the US government. The companies said they signed the agreement with the government and completed the final obstacle for the deal.

US Steel said on Friday that the National Security Agreement comprises a golden share for the US government, without indicating the powers the government would export with its share.

Trump said on Thursday that the golden share gives the US president “Total Control” without providing details. Republican Pennsylvania Senator Dave McCormick told CNBC in May that the share of the US government is in control of various management seats.

Commerce Secretary Howard Lutnick described the rights that the US government has with its golden share in a social media post Saturday. Lutnick said that the share of the US President Veto power gives over any decision to move the head office of US Steel, to relocate the company outside the US, to rename the name of the American steel, the transfer production or jobs outside the US and to close plants or inactive plants frames before certain time.

Trump has avoided the American Steel-Nippon transaction to call a merger and describes the deal instead as a 'partnership'. US Steel confirmed on Monday in a legal submission that the company will become a full subsidiary of Nippon Steel Noord -America.

“All legal approvals required for the completion of the transaction have been received,” said US Steel in an application for the Securities and Exchange Commission on Monday. “The transaction remains subject to the satisfaction of the usual closing conditions and is expected to be completed immediately.”