To secure its proposed acquisition of United States Steel Corporation X, Japanese steelmaker Nippon Steel NPSCY NISTF has boosted its lobbying spending in Washington.
What Happened: Nippon Steel has spent $1.3 million on lobbying between July and September, a substantial increase from the $1.1 million spent in the preceding seven months, according to a disclosure by the firm hired by the Japanese steelmaker.
The company is facing resistance from U.S. lawmakers, who have expressed concerns over the proposed $15 billion acquisition.
Nippon Steel hired Akin Gump Strauss Hauer & Feld to lobby on issues related to the merger. The firm disclosed lobbying activities with various government bodies, including the House, Senate, and the Office of the U.S. Trade Representative.
The surge in lobbying spending coincides with a crucial phase for the merger in Washington. President Joe Biden was reportedly set to block the acquisition in September, prompting Nippon Steel’s vice chair to make a last-ditch effort to save the deal.
The Committee on Foreign Investment in the United States (CFIUS) subsequently allowed Nippon Steel to refile its bid after the election.
Nippon Steel did not immediately respond to Benzinga's request for comment.
Why It Matters: The increased lobbying expenditure by Nippon Steel comes amid strong opposition to the acquisition from both sides of the political spectrum. This move reflects the company’s determination to push through the deal despite the challenges it faces in Washington.
Earlier in September, Democratic presidential candidate Kamala Harris emphasized the importance of maintaining domestic control over steel production, even if it results in job losses. This stance aligns with the concerns expressed by U.S. lawmakers regarding the potential impact of the acquisition on American jobs and national security.
Meanwhile, former President Donald Trump has vowed to block the deal if he is re-elected.
Despite the opposition, Nippon Steel secured a favorable arbitration ruling in its $15 billion acquisition of U.S. Steel. The ruling, however, did not change the United Steelworkers’ (USW) opposition to the deal.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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