The United States government is likely to have a veto over key corporate decisions related to United States Steel if the American company is acquired by Nippon Steel, according to several news reports.

The plan ¡ª first reported by Japan¡¯s Nikkei ¡ª will give the U.S. government a ¡°golden share¡± in U.S. Steel that would allow it to override the Japanese parent company, and that this power will be available to the government even though it will have an interest far below controlling.

Nippon Steel is still considering the plan, Nikkei reported.

U.S. President Donald Trump announced on Friday last week that the two companies will enter into a ¡°partnership,¡± with Nippon Steel agreeing to invest $14 billion into U.S. Steel. He later mentioned that the American steelmaker will remain controlled by the U.S., but the precise structure of the deal remains unclear.

Nippon Steel declined to comment. Chief Cabinet Secretary Yoshimasa Hayashi declined to comment when asked by reporters on Wednesday, saying it was a private business matter.

Republican Sen. Dave McCormick, who represents Pennsylvania and met with Trump the night before the president¡¯s Friday announcement, said in a CNBC interview Tuesday that the two companies will sign a national security agreement with the U.S. government. Under the terms of the agreement, U.S. Steel will have a U.S. chief executive and a U.S.-majority board, and the U.S. government will hold a golden share.

When asked about Nippon Steel¡¯s attitude toward the plan, McCormick said the company is aware of ¡°what they are getting into¡± in terms of structuring, since it was Nippon Steel¡¯s idea.

The agreement requires that a number of the board members be approved by the U.S. government, McCormick said.

¡°That will allow the United States to ensure production levels aren¡¯t cut,¡± he said, and ensure that investment into facilities happens as promised.

¡°I don¡¯t think this is a model for every transaction, but I think it could be a model for transactions that really affect our national security,¡± he added.

In Japan, the economy minister holds a golden share in energy developer Inpex in order to prevent foreign takeovers and ensure supply security. In the U.S., listed companies are generally not permitted to issue golden shares, which means U.S. Steel is likely to be delisted if the plan goes ahead, according to Nikkei.

Bruce Aronson, a senior advisor at New York University¡¯s U.S.-Japan Law Institute, said the term ¡°golden share¡± might sound powerful and appealing in aligning with the president¡¯s comment that U.S. Steel will remain U.S.-controlled, but the exact structure of the deal remains in question.

¡°We don¡¯t know the details of the proposed ownership structure of U.S. Steel, and use of...