In a last-ditch effort to save the attempted merger between U.S. Steel and Japan’s Nippon Steel, the two companies sued President Biden and other administration officials on Monday over the president’s decision last week to block the $14 billion deal over national security concerns.
“Nippon Steel and U.S. Steel are disappointed to see such a clear and improper exploitation of the country’s national security apparatus in an effort to help win an election and repay political favors,” the companies said in a statement. “Nippon Steel and U.S. Steel are entitled to a fair process and have been left with no choice but to challenge the decision and the process leading to it in court.”
U. S. Steel announced it has filed multiple lawsuits in response to the wrongful interference with its proposed acquisition by Nippon Steel. We will vigorously defend our rights to complete this transaction & secure the future of U. S. Steel. Read more: https://t.co/dz1XcNH38D pic.twitter.com/WDKarH8rAY
— U. S. Steel (@U_S_Steel) January 6, 2025
The lawsuit, filed in a federal court in Washington, accused Mr. Biden and other senior administration officials of corrupting the review process for political gain and of harming steel workers and the American steel industry by blocking the deal under false national security pretenses. [...]
The companies are asking for the Committee on Foreign Investment in the United States to conduct a new review of the deal.
The companies also filed a separate lawsuit against Cleveland-Cliffs, an American steel company that previously tried to buy U.S. Steel but was rebuffed, along with Lourenco Goncalves, chief executive of Cleveland-Cliffs, and David McCall, international president of the powerful union United Steelworkers. The lawsuit alleged that Cleveland-Cliffs and the head of the union illegally colluded to undermine the proposed deal between U.S. Steel and Nippon Steel. […]
The companies argue that because Mr. Biden publicly said last March that he did not want the deal to happen, the national security review conducted by the panel, known as CFIUS, was tainted by politics and “designed to reach a predetermined result.” They also claimed that the panel had failed to engage with the companies when they proposed measures to mitigate any national security concerns.
After a yearlong review process, the interagency committee — ultimately divided on the risks posed by the transaction — left the decision to Mr. Biden, who had said that U.S. Steel should remain American-owned and -operated. (NYT)
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Biden argued last week that it's his "solemn responsibility" to ensure America retains a "strong domestically owned and operated steel industry."
"U.S. Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world," he added.
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