Nippon Steel has added another lobbying firm to its roster, as the Japanese company seeks to pave the way for the acquisition of U.S. Steel.
The U.S. Senate's lobbying disclosure website shows that strategic communications firm Vox Global has joined the Nippon Steel team as a subcontractor to Akin Gump Strauss Hauer & Feld, which Nippon Steel retained in December.
Public filings show that Vox will be represented by James Baril, who previously served as a deputy regional director in the office of Sen. John Cornyn, a Republican from Texas. Cornyn serves as the ranking Republican member of the Senate Finance Committee's subcommittee on international trade, customs and global competitiveness.
The move signals that the Japanese steelmaker is expanding its advocacy activities, adding Republican firepower on Capitol Hill.
The lobbyists at Akin assisting Nippon Steel include Reginald Babin, who served as chief counsel to Senate Majority Leader Chuck Schumer (D-New York), and Hunter Bates, former chief of staff to Senate Minority Leader Mitch McConnell (R-Kentucky).
Nippon Steel's announcement on Dec. 18 that it would acquire the iconic American steelmaker for over $14 billion was met immediately by opposition from United Steelworkers (USW), North America's largest industrial union, as well as lawmakers from Pennsylvania, where U.S. Steel is based. The opposition came despite the Japanese steelmaker's pledge to protect jobs and maintain the headquarters in Pittsburgh.
After the backlash, Nippon Steel hired Akin to assist with its messaging, and has since placed advertisements in U.S. publications to highlight the benefits of the deal.
"This move shows that Nippon Steel recognizes the political challenges of the deal," William Chou, a Japan chair fellow at the Hudson Institute think tank, told Nikkei Asia. "They're trying to address it, likely with an eye to the U.S. Steel shareholder meeting -- expected as early as March -- to approve the deal, which will likely draw fresh attention."
But on Monday, USW issued a statement calling the media blitz "smoke and mirrors."
"By this point, you've probably seen the TV and print ads proclaiming how great this deal is for workers and the steel industry," the statement said. USW said that U.S. Steel is investing "huge amounts of money" in public relations and lobbying with appointed and elected government officials in Washington as well as state capitals, asking for "unearned trust."
"We as union members don't deal in trust. We base our decisions on enforceable contracts that protect our employment security, our economic security and our retirement security," the statement said.
Nippon Steel does have its supporters in Washington. John Murphy, senior vice president and head of international at the U.S. Chamber of Commerce, wrote in a blog post on Feb. 14 that blocking the sale would pose significant risks for U.S. prosperity and security.
Noting that Japan is a top investor in the U.S. -- more than $700 billion nationwide -- and one of America's closest allies, Murphy argued that "blocking this investment could inspire copycat moves overseas."
If foreign governments blocked U.S. investments on spurious grounds, that would harm American economic interests worldwide, he wrote.
Washington-based political risk consultancy Baron Public Affairs wrote in a memorandum this month that opposition toward the deal from conservative lawmakers contradicts the economic priorities and social values they typically support.
"Japan is well positioned to support national conservatives' vision for a stronger domestic industrial economy and pivoting away from reliance on China," the firm wrote. "Already, Japanese companies employ more American workers than the companies of any other foreign country."
But Baron noted that due to the growing political influence of national conservatives, major companies increasingly will pursue their support.
"Ultimately, the Nippon Steel controversy represents a test for the national conservative movement," the firm said. "Because it is growing in political influence, the movement is becoming an increasingly valuable constituency whose support major companies will pursue -- and thus the national conservative movement will likely face these kinds of scenarios pitting corporate interests against the movement's principles with heightened frequency."
Source: Nikkei Asia
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