U.S. Steel rallies as Trump approves Nippon takeover

U.S. Steel shares jumped on Monday after President Donald Trump approved its controversial merger with Japan’s Nippon Steel.

U.S. Steel shares were last up about 5% in premarket trading.

Trump issued an executive order on Friday that allowed U.S. Steel and Nippon to finalize their merger so long as they signed a national security agreement with the U.S. government. The companies said they signed the agreement with the government, completing the final hurdle for the deal.

U.S. Steel said the national security agreement includes a golden share for the U.S .government, without specifying what powers the government would wield with its share. Trump said on Thursday that the golden share gives the U.S. president “total control.”

Typically, golden shares allow the holder veto power over important decisions the company makes.

Trump has avoided calling the transaction a merger, describing the deal instead as a “partnership.” U.S. Steel confirmed in a regulatory filing Monday that the company will become a wholly owned subsidiary of Nippon Steel North America.

“All regulatory approvals required for the completion of the Transaction have been received,” U.S. Steel said in a filing with the Securities and Exchange Commission on Monday. “The Transaction remains subject to the satisfaction of customary closing conditions, and is expected to be completed promptly.”

This is a developing story. Please check back for updates.