President-elect Donald TrumpFormer US Secretary of State Mike Pompeo He threw his support behind him Nippon Steel Company(OTC:NPSCY) (OTC:NISTF) proposed a $14.9 billion acquisition United States Steel Corporation (NYSE:X), arguing that the deal will strengthen America’s position Against Chinese dominance of the market.
What happened: In an opinion article published in the Wall Street Journal on Pompeo, who now serves as strategic advisor to Nippon Steel, stressed on Friday that the deal would strengthen American 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 transmits its decision. The decision is due later this month.
Pompeo responded to these concerns, saying that blocking the deal would “undermine US national security by diminishing our ability to maintain strong, competitive domestic steel production.” He highlighted Nippon Steel’s commitment to invest $2.7 billion in domestic steel facilities represented by the unions.
Official spokesman for the American Steel Company Amanda Malkowski Previously Defend the dealPointing out that “this deal should be approved based on its merits.” Nippon Steel expressed its confidence in the American legal system, indicating that it would take legal action if necessary.
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Why does it matter?: The proposed acquisition of the Japanese steelmaker comes amid growing concerns about overproduction of steel in China and its impact Its impact on global markets.
Biden has until December 22 or 23 to receive the CFIUS referral and must announce his decision within 7 days. US Steel shares saw volatility as investors reacted to the developments surrounding the proposed acquisition.
In November, after winning the election, Trump made an announcement at a meeting mail On Truth Social, she said: “I will not invite the former ambassador Nikki HaleyOr former Secretary of State Mike Pompeo to join the Trump administration that is currently in the process of being formed.”