Nippon Steel has hired former US Secretary of State Mike Pompeo to lobby for the controversial $14.9 billion takeover bid for US Steel, which has faced resistance from both Republicans and Democrats.
Pompeo, who spoke at the Republican National Convention this week where Trump accepted the party's nomination for president, will serve as an advisor for Nippon Steel. The company is trying to overcome public statements against the deal by Trump and President Joe Biden. Both politicians are vying for working-class votes in the important swing state of Pennsylvania ahead of the November elections.
As a former Secretary of State, Director of the Central Intelligence Agency, and U.S. Congressman, Mike Pompeo is respected on both sides of the political spectrum and possesses an unparalleled understanding of the geopolitical and security challenges America faces today," Nippon Steel stated on Sunday.
We look forward to highlighting the ways in which Nippon Steel's acquisition of US Steel strengthens the country's economic and national security.
Pompeo is not the only former Trump advisor who supports the deal. In a recently released report, Stephen Moore, a former advisor to the Trump campaign, said that "Nippon Steel's offer to acquire US Steel is an economic win for the US manufacturing industry and the US economy in general" and described the deal as a clear case of 'friendshoring' between Japan and the USA.
Biden's resistance to the deal had raised concerns in Washington and Tokyo that this could damage relations with Japan, one of the U.S.'s closest allies in the effort to contain China's military and economic rise.
According to two people familiar with the situation, senior Japanese government officials are also heavily involved in lobbying for the enforcement of the deal. Nippon Steel declined to comment on this claim.
Although the deal for Pittsburgh-based US Steel, announced in December, has already received regulatory approvals outside the USA, a national security review by Washington is still pending, and there are objections from powerful unions.
After Trump railed against the "terrible" deal and promised to block it if he were elected, Biden also declared his opposition to the takeover, saying it was "vital" that the American steel company remain "domestically owned and operated.
Nippon Steel, which has delayed its schedule for completing the deal, remains confident and said in May that "calmer discussions" with the unions are expected after the presidential election.
The company also stated that there would be no job losses or plant closures as a result of the merger and that it would be relocating its own US headquarters from Houston to Pittsburgh.
Pompeo's appointment was first reported by Bloomberg.
