Mike Pompeo defends US Steel, Nippon deal, urges Trump to do the same

Former Secretary of State Mike Pompeo defended Nippon Steel’s proposed $14 billion deal to acquire US Steel and urged President-elect Donald Trump to support the deal before the presidential election. President Biden’s decision To prevent takeover.

Biden announced on Friday that he would block the deal on national security grounds, saying in a statement that “a strong, domestically owned and operated steel industry is a core national security priority and is essential for resilient supply chains.”

Pompeo, who was hired by Nippon Steel last year to advise on the deal, said in an appearance on Thursday “Kudlow” on FOX Business Network He accepted the White House’s decision that “unfortunately, that committee that was responsible for assessing national security risks has become politicized.”

“Instead of just looking at the national security risks, of course there is none, it is its ally, Japan, which will invest in America, make steel here in America, and build in America,” Pompeo said.

President Biden blocks the sale of US steel to NIPPON STEEL

Pompeo added that while he hoped Biden would allow the deal to go forward, if the White House blocked the deal, he hoped the incoming Trump administration, which has also expressed opposition to the deal, would “reconsider with respect to Pennsylvania workers.” , who are almost all in favor of moving forward with this deal, everyone except the top liberal union leadership… It’s a good thing for the community and the Mon Valley.

tape	protection	last	It changes	% changes
X	United States Steel Corporation.	30.69	-1.91	-5.86%
NPSCY	Nippon Steel Company	6.98	+0.01	+0.14%

The president’s decision comes after US Steel CEO David Burritt warned that if the company… Acquisition of Nippon Steel Company If the project fails, the company will likely close steel mills in Pennsylvania’s Monongahela Valley and Gary, Indiana, which were scheduled to receive a multibillion-dollar upgrade with funds injected by Nippon after the sale.

“We will not do this if the agreement fails,” Burritt said. The Wall Street Journal In an interview. “I don’t have money.”

Nippon Steel hires former Trump official Mike Pompeo to advise on purchasing US steel

Nippon Steel has pledged to invest $2.7 billion in US Steel’s Mon Valley Works and Gary Works plants as part of a modernization project aimed at making the facilities more competitive with international rivals. Nippon also said it would maintain its name, brand and headquarters United States steel Refrain from laying off workers until 2026 if the deal is completed.

Burritt also noted that if Mon Valley Works closes, the company would likely look to move it Headquartered outside of Pittsburgh to a location in the south, where an increasingly large share of the company’s production moved.

Nippon Steel and US Steel said in a joint statement that they are “dismayed by President Biden’s decision to block Nippon Steel’s acquisition of US Steel, which reflects a clear violation of due process and the law governing CFIUS.”

“Instead of complying with the law, the process was manipulated to advance President Biden’s political agenda. The President’s statement and order provide no credible evidence of a national security issue, making it clear that this was a political decision,” the companies said. Adding that “they have no choice but to take all appropriate measures to protect our legal rights.”

US STEEL CEO SAYS COMPANY LIKELY TO SHUT STEEL PLANTS IF $14 BILLION SALE OF NIPPON STEEL IS PROPOSED

the United Steelworkers Union (USW), which has long opposed the deal, issued a statement saying its “first and only concern is the long-term viability of our facilities as we look to ensure a strong domestic steel industry for the future.”

“We are grateful for President Biden’s willingness to take bold action to preserve a strong domestic steel industry and for his lifelong commitment to American workers,” the USW added. “Moving forward, we are confident that through responsible management, US Steel will continue to support good jobs, healthy communities, and strong national and economic security into the future.”

The US Chamber of Commerce criticized the Biden administration for politicizing the proposed deal, and said in a statement that “steel workers’ livelihoods are threatened” by the decision to block the deal.

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“The Biden administration’s politicization of Nippon Steel’s acquisition of US Steel threatens to impose a heavy economic cost on the American people in the years ahead,” said John Murphy, senior vice president and head of international affairs at the U.S. Chamber of Commerce. “The first harmful effects will likely be felt by steelworkers – in Pennsylvania, Indiana and other states – whose livelihoods are threatened by this decision.”

“The decision may also have a negative impact on international investment in America. The investment of our important and trusted ally, Japan, supports nearly 1 million American jobs alone. The business community will continue to work to facilitate investments from abroad that help grow our economy,” Murphy said. And support American families.