Nippon Steel and US Steel rival denies bombshell lawsuit claims: ‘We are armored through the teeth’

After being embroiled in a separate lawsuit by Nippon Steel and US Steel against the Biden administration’s decision to block a nearly $15 billion takeover deal, Cleveland-Cliffs’ CEO is speaking out about allegations of racketeering and anti-competitive behavior.

“My answer [will] given in court. And I never had enough time to prepare for the trial to know it was coming. So we’re armed to the teeth, and the Japanese will find out. It’s a two-way street, and we’re going to We will discuss it in court,” said Lourenco Goncalves in an exclusive interview. On “Mornings with Maria”. Tuesday.

“I don’t think any other deal has been scrutinized more than this deal. They’ve actually gone through three 90-day periods of review,” he continued in such situations, the deal goes to the president of the United States, and the president of the United States makes the decision. That’s exactly what happened.”

Last Friday, President Biden announced his decision to block the sale of US Steel to Japan-owned Nippon Steel, the two steel companies filed a joint lawsuit against the US government in response, claiming that Biden used “undue influence to advance his political agenda”.

CEO of US STEEL. THE GOVERNMENT FAILED OUR COUNTRY AFTER THE NIPPON STEEL DEAL.

A separate lawsuit alleges that Cleveland-Cliffs, Goncalves and United Steelworkers (USW) President David McCall illegally coordinated to block the deal and undermined US Steel’s ability to compete.

The CEO of American steel maker Cleveland-Cliffs denies the allegations in the lawsuit filed by Nippon and US Steel. (FOX Business)

Before accepting Nippon’s offer, US Steel rejected Cleveland-Cliffs’ $7 billion takeover offer in 2023.

“Let’s correct this record once and for all. $7 billion was my initial bid, and the auction goes on for six months,” Goncalves explained. “And through the auction, I got to $54 a share. And then my number magically won by a dollar in the last few hours.”

“The fact of the matter is that this deal was bought illegally,” the CEO said before clarifying that Cleveland-Cliffs no longer has any interest in buying US Steel.

“[The] the situation has changed. The background of the market changed. we have a new president is coming to town… And Trump immediately said that the deal will be blocked immediately. It took Biden more than a year to do what he had to do, and now the Japanese seem surprised by the result,” added Goncalves.

A White House spokesman clarified last week that Biden’s decision was made on the basis of national security and that he would “never hesitate to protect this nation’s security, infrastructure and supply chain resilience.”

Despite legal action by Nippon and US Steel, Goncalves believes the deal has no chance of being revived.

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“Nippon Steel cannot and will not buy US Steel. It is US Steel, so the US corporation must continue to be American,” the CEO said President of the United States It’s a bad idea.”

In a prepared statement on Monday, Nippon and US Steel said: “From the beginning of the process, both Nippon Steel and US Steel have worked in good faith with all parties to emphasize how the Transaction will enhance, not threaten, the national security of the United States, including by revitalizing American steel-based communities.” , strengthening the US steel supply chain and strengthening the domestic US steel industry against the threat of China… Nippon Steel is the only partner. both willing and able to make necessary investments”.

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FOX Business’ Steven Soras contributed to this report.