(In Aug. 1 story, corrects Nippon Steel's ( NISTF ) commitment to "until"

the current agreement expires, not "even after", in paragraph 9)

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Boosts annual profit f'cast by Y40 bln

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Dialogue with 700 stakeholders fostered deal understanding

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Sees former U.S. Secretary of State Pompeo as a strong

advisor

By Yuka Obayashi and Katya Golubkova

TOKYO, Aug 1 (Reuters) - Japan's biggest steelmaker

Nippon Steel ( NISTF ) on Thursday raised its full-year profit

forecast amid improving margins in the steel business, and

reiterated its confidence in closing its proposed acquisition of

U.S. Steel by year-end.

Net profit in April-June, its first quarter, fell 11% from a

year earlier to 157.6 billion yen ($1 billion), but exceeded

analyst expectations of 108.7 billion yen as per LSEG data.

The world's fourth-biggest steelmaker increased its net

profit forecast for the year ending in March 2025 to 340 billion

yen from 300 billion yen, expecting its steel business to

improve. Still, the revised figure fell short of analysts'

estimate of 372.6 billion yen.

"We face an unprecedented slump in steel demand, but our

efforts have borne fruit," Vice Chairman Takahiro Mori said,

noting its restructuring including shutting down steel plants.

Nippon Steel ( NISTF ), which clinched the $14.9 billion deal to buy

U.S. Steel last December, said on Thursday it received a second

request for information and data from the U.S. Department of

Justice as part of the U.S. government's review of the deal.

"We are confident that we can close the deal by the end of

this year," Mori said, citing his repeated visits to the U.S.

and dialogue with some 700 stakeholders, including employees of

the U.S. Steel, have helped to foster a better understanding of

the deal.

Both steelmakers have received all regulatory approvals

outside of the United States for the deal, but face political

opposition, U.S. regulatory scrutiny and objections from the

powerful United Steelworkers (USW) union, which fears the deal

could lead to job losses.

"The union has not explicitly changed its position, but the

right understanding has been disseminated around it," Mori said.

As a part of its bid, which has faced resistance from both

Democrats and Republicans, Nippon Steel ( NISTF ) said it has committed to

no job cuts, job or production transfer overseas or plant

closures until the current agreement between USW and U.S. Steel

expires in September 2026.

Last month, Nippon Steel ( NISTF ) said it hired former U.S. Secretary

of State Mike Pompeo to help seal the deal.

"Pompeo will become a strong advisor to us as he is well

respected by both Republicans and Democrats," Mori said, adding

the deal is expected to receive understanding regardless of who

becomes the next U.S. president since it would be good for the

U.S. economy.

($1 = 149.6100 yen)