Japan’s Nippon Steel Corp has hired former US secretary of state Mike Pompeo as an adviser to help with its proposed acquisition of US Steel Corp, Kyodo News reported on Saturday.
The Japanese firm described Pompeo as being “respected by both” the Democratic Party and Republican Party, and as having “unparalleled insight into US geopolitical and security challenges,” Kyodo said.
Critics such as the United Steelworkers union see the deal as a threat to the industry in Pennsylvania, where US Steel is based, and the acquisition plan has become a political issue ahead of the US presidential election in November.
Photo: REUTERS
US President Joe Biden and former US president and Republican Party candidate Donald Trump have vowed to annul the deal, as they compete for blue-collar votes, putting the transaction into limbo probably until after the election.
The plan was announced in December last year, with the Japanese steelmaker promising investments to keep Pennsylvania factories competitive with foreign producers, as well as newer “mini-mills” in the US South that are less taxing on the environment.
Nippon Steel said in April that the proposed US$14 billion takeover was going through an official US merger review, following a report that the US Department of Justice had launched an antitrust investigation.
Pennsylvania is a key election battleground state, carried by Biden in 2020, but won by Trump in 2016.
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