Nippon has hired former U.S. Secretary of State Mike Pompeo to assist in closing a $14.9 billion deal to acquire U.S. Steel, according to Bloomberg. Initially agreed upon in December, the deal was expected to close in the second or third quarter of 2024 but has been delayed to the end of 2024 due to increasing scrutiny over a foreign takeover of the iconic American steelmaker. The United Steelworkers union, along with politicians from both parties, including Pennsylvania Sen. John Fetterman and Ohio Sen. JD Vance, have expressed strong opposition to the sale.
To finalize the acquisition, Nippon must navigate two regulatory reviews: an antitrust investigation by the Department of Justice and a national security review by the Committee on Foreign Investment in the U.S. The involvement of Pompeo is seen as a strategic move to help Nippon address these regulatory challenges and secure approval for the transaction.
The deal’s delay and the need for regulatory clearance highlight the complexities of foreign acquisitions of major U.S. companies, especially in strategic industries like steel. The outcome of these reviews will determine the future of the acquisition and its impact on the U.S. steel industry and its workforce.
