Nippon Steel says it’s suing Biden admin for blocking US Steel acquisition
US Steel and Nippon Steel say they are filing joint lawsuits against the US government and others to block the deal, FOX Business’ Lydia Hu more.
Nippon Steel and US Steel filed a lawsuit challenging the company The Biden administration will block the deal worth about 15 billion dollars of the Japanese company to buy the American steelmaker.
The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia District, asks the court to overturn the decision by the Committee on Foreign Investment and Investment in the United States. President Biden to block the sale.
The companies also filed a second lawsuit against rival Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall, accusing them of illegally coordinating to block the deal and undermining US Steel’s ability to compete.
“Since 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 by strengthening U.S. steel supply chain and strengthening the domestic U.S. steel industry against the threat from China,” the companies said in a prepared statement Monday is the only partner that is both willing and able to make the necessary investments.”
CEO of US STEEL. THE GOVERNMENT FAILED OUR COUNTRY AFTER THE NIPPON STEEL DEAL.
President Biden has blocked Nippon Steel Corps’ multi-billion dollar takeover of United States Steel Corp. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
Biden blocked the deal on Friday, citing national security concerns, an argument that has drawn backlash.
US Steel CEO David Burritt warned that if the company acquisition by Nippon Steel flopped, the company will likely close steel mills in Pennsylvania’s Monongahela Valley and Gary, Indiana, which were slated to receive a multibillion-dollar cash upgrade from Nippon after the sale closes.
Nippon Steel Corp. logos are displayed at the company’s headquarters in Tokyo, Japan on March 18, 2019. (REUTERS/Yuka Obayashi/File Photo/Reuters Photos)
“We did everything right with Nippon,” Burritt told Fox Business reporter on Monday. “We did everything right. They failed us. And we will right that wrong. They have failed our workers, they have failed our country, they have failed our country. The best ally in Asia and they have failed to China without following the rule of law.”
NIPPON STEEL’S BID TO BUY US STEEL THREATS NATIONAL SECURITY EXPERTS IN
Nippon Steel had pledged to invest $2.7 billion in US Steel’s Mon Valley Works and Gary Works as part of a modernization project aimed at making the facilities more competitive with international rivals.Nippon also said it would maintain name, brand and headquarters USA steel and refrain from cuts until 2026 if the deal were to go through.
Before accepting Nippon’s offer, US Steel rejected Cleveland-Cliffs’ $7 billion takeover offer in 2023.
A cargo ship pushes a barge near the Clairton Coke Force plant in Clairton, Pennsylvania on September 9, 2024. (Justin Merriman/Bloomberg via Getty Images, File/Getty Images)
Nippon and US Steel said in a press release Monday that Biden used “undue influence to advance his political agenda.”
However, the companies also face the incoming Trump administration, which has also vowed to block the deal.
Trump questioned the proposed sale in a post on Truth Social on Monday.
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“Why would they want to sell US Steel now when tariffs would make it a much more profitable and valuable company?” Trump wrote. “Wouldn’t it be nice to lead US Steel, once the biggest company in the world, back to greatness? It could all happen very quickly.”
Fox Business’ Lydia Hu, Eric Revell and Yael Halon contributed to this report.
This is a groundbreaking new story. check back for updates.
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