Ex-Trump diplomat, Mike Pompeo, hired by Japan’s Nippon Steel to clinch US Steel purchase

Nippon Steel says the purchase of US Steel would give it sufficient scale to compete with Chinese counterparts

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Former US Secretary of State Mike Pompeo has been hired as an adviser by Japan’s Nippon Steel to help with its proposed acquisition of US Steel. Photo: Bloomberg

Published: 5:11pm, 20 Jul 2024Updated: 5:51pm, 20 Jul 2024

Japan’s Nippon Steel has hired former US Secretary of State Mike Pompeo to help complete a proposed purchase of US Steel, a deal facing bipartisan opposition from Donald Trump and President Joe Biden.

Pompeo, who served as the top American diplomat under Trump, will be an adviser to the Japanese company for its US$14.1 billion purchase, according to people familiar with the matter, speaking on condition of anonymity to discuss the move. The deal’s fate is unclear as it undergoes a national security review and faces opposition by the United Steelworkers union.

Nippon Steel confirmed the move in a written statement, praising Pompeo’s record. Pompeo said the US should expand its manufacturing base by partnering with allies in a statement also provided by the company.

“I’m proud to be working on behalf of a deal that provides the best path forward to not only revitalise an iconic American company, but also to strengthen American supply chains and protect American jobs,” he said.

US Steel shares reversed declines on the news, climbing as high as 1.5 per cent before paring some gains. The stock closed Friday at US$38.18 in New York.

Nippon Steel has positioned the deal as a potential counterweight to China, arguing that its purchase of US Steel would give Nippon Steel sufficient scale to compete with Chinese counterparts seeking to dominate the market.

Pompeo isn’t the only Trump adviser working to help Nippon Steel promote the deal. Stephen Moore, who Trump consulted as he was drafting his signature tax cuts and later nominated to serve as a governor of the Federal Reserve, released a report last week arguing that a deal would benefit American workers and the steel industry as a whole.