What to Know
The proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel has triggered intense political and regulatory scrutiny, with both companies ramping up their lobbying efforts amid bipartisan opposition and a review by federal regulators.
By the Numbers
Until the final quarter of 2023, the Japanese company had no registered U.S. lobbyists. However, as the deal moved forward, Nippon Steel quickly assembled a high-profile lobbying team with multiple "revolving door" lobbyists. Nippon Steel’s lobbying spending skyrocketed to nearly $1.1 million in the first half of 2024, with $830,000 spent in the most recent quarter alone.
U.S. Steel has also ramped up its lobbying, spending $1.7 million in the first half of 2024, more than triple the $545,000 it spent during the same period last year and exceeding its total annual federal lobbying spending during any year in the past decade.
Dig Deeper
Nippon Steel's acquisition of U.S. Steel has faced significant delays due to mounting resistance from key political figures, including both former President Donald Trump and President Joe Biden. Trump reiterated his opposition to the merger during a speech this week at a factory in Pennsylvania, a state where U.S. Steel is headquartered.
The merger remains under the scrutiny of the Committee on Foreign Investment in the U.S., which is tasked with evaluating the national security implications of foreign investments in the U.S. economy. The committee’s reviews can ultimately end up on a president’s desk for a decision but the timeline is not public, leaving it unclear whether that would happen while Biden is in the White House or after the next president is inaugurated.
