In a bid to secure its proposed acquisition of United States Steel Corporation, Japanese steelmaker Nippon Steel has ramped up its lobbying efforts in Washington. The company’s lobbying expenditure surged to $1.3 million between July and September, a substantial increase from the $1.1 million spent in the previous seven months. This aggressive push reflects Nippon Steel’s determination to overcome the significant political opposition it faces in securing the $15 billion deal.
The acquisition has drawn scrutiny from both sides of the political aisle, with concerns raised about the potential impact on American jobs and national security. Democratic presidential candidate Kamala Harris has expressed the importance of maintaining domestic control over steel production, even if it means job losses. Former President Donald Trump has also vowed to block the deal if he is re-elected. This bipartisan opposition highlights the delicate political landscape that Nippon Steel must navigate to finalize the acquisition.
Nippon Steel’s increased lobbying expenditure coincides with a critical phase for the merger. The company’s lobbying firm, Akin Gump Strauss Hauer & Feld, has been engaging with various government bodies, including the House, Senate, and the Office of the U.S. Trade Representative. The firm disclosed lobbying activities on issues directly related to the proposed merger, demonstrating the company’s commitment to securing approval from key government officials.
The acquisition faced a significant hurdle when President Joe Biden was reportedly set to block the deal in September. However, Nippon Steel’s vice chair successfully lobbied for a chance to resubmit its bid after the election, with the Committee on Foreign Investment in the United States (CFIUS) ultimately allowing the resubmission. Despite these setbacks, Nippon Steel managed to secure a favorable arbitration ruling in its acquisition of U.S. Steel, though the ruling did not change the United Steelworkers’ opposition to the deal.
The company’s increased lobbying efforts highlight the significant obstacles it faces in completing the acquisition. The political landscape remains complex, with concerns about national security and job losses persisting. However, Nippon Steel’s aggressive lobbying push demonstrates its unwavering commitment to pushing through the deal despite the challenges it faces in Washington.