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Japan’s biggest steelmaker, Nippon Steel Corp., said on Saturday that it has hired former U.S. Secretary of State Mike Pompeo to help with its effort to acquire U.S. Steel.
“We look forward to working alongside him to further emphasize how Nippon Steel’s acquisition of U.S. Steel bolsters the country’s economic and national security,” Nippon Steel said in a statement to Reuters.
Advisory Role Without Specific Title:
Japan’s Kyodo news agency and Bloomberg, which first reported the appointment, said Pompeo had been hired as an adviser. Nippon Steel said in its statement that Pompeo had not been given a specific job title within the company.
The world’s No. 4 steelmaker added that Pompeo, who functioned as secretary of state during Donald Trump’s presidency, was a well-respected figure among Democrats and Republicans.
Regulatory Approvals and Opposition:
Although both steelmakers have received all regulatory approvals outside the United States for their proposed $14.9 billion merger, they face political opposition and regulatory scrutiny from within the United States.
Nippon Steel also faces objections from the powerful United Steelworkers (USW) union, which fears the deal could lead to job losses. The Japanese company has pledged to honor agreements between U.S. Steel and USW while offering other commitments.
Political Resistance:
Both Republican nominee Trump and President Joe Biden have said they would block the deal. Nippon Steel’s key negotiator on the deal, Vice Chairman Takahiro Mori, visited the United States this month, including U.S. Steel facilities, and met stakeholders and employees, the company said earlier this week.
