president-elect Donald Trump‘s former US Secretary of State Mike Pompeo has abandoned his support Nippon Steel Corp.‘s (OTC:NPSCY) (OTC:NITF) has proposed a $14.9 billion acquisition Steel company from the United States (NYSE:X), arguing that the deal would strengthen America’s position against Chinese market dominance.
What happened: In an op-ed published Friday in The Wall Street Journal, Pompeo, who now serves as a strategic advisor to Nippon Steel, emphasized that the transaction would enhance U.S. national and economic security while protecting American jobs.
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The deal faces significant opposition from both presidents Joe Biden and Trump. According to Bloomberg sources, Biden is expected to block the takeover on national security grounds when the Committee on Foreign Investment in the United States announces its decision later this month.
Pompeo refuted these concerns, stating that blocking the deal would “undermine America’s national security by reducing our ability to maintain robust and competitive domestic steel production.” He highlighted Nippon Steel’s commitment to invest $2.7 billion in union-represented local steel facilities.
Spokesperson for US Steel Amanda Malkowski has previously defended the transaction, stating that “this transaction should be approved on its merits.” Nippon Steel expressed confidence in the US legal system and indicated that it would take legal action if necessary.
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Why it mattersThe proposed takeover of the Japanese steel producer comes amid growing concerns about Chinese overproduction of steel and its impact on global markets.
Biden has until December 22 or 23 to receive the referral from CFIUS and must announce his decision within seven days. US Steel shares have seen volatility as investors react to developments surrounding the proposed acquisition.
In November, following his election victory, Trump made a statement in a post on Truth Social, stating: “I will not be inviting the former Ambassador Nikki Haleyor former Secretary of State Mike Pompeo, to join the Trump administration currently in formation.”
