(MENAFN- Nam News Network)
TOKYO, Jan 4 (NNN-NHK) – Japan's Nippon Steel Corp is set to file a lawsuit, in response to U.S. President Joe Biden's decision, to block its takeover of U.S. Steel Corp, local media reported today.
Nippon Steel and U.S. Steel are expected to claim in court that Biden did not present sufficient evidence, to prove the proposed Acquisition poses a threat to U.S. national security, and that his decision violates due process, under the U.S. constitution and the law governing the Committee on Foreign investment in the U.S., Kyodo News reported, citing sources close to the matter.
Biden said yesterday that, he has decided to block the 14.1-billion U.S. dollar sale of U.S. Steel to the Japanese steel giant, citing risks to national security, while urging the two steelmakers to“fully and permanently” abandon their plan.
In a joint statement yesterday, the two firms said, the U.S. authorities' review of the international buyout project was“manipulated to advance President Biden's political agenda” and that they will“take all appropriate action to protect our legal rights.”
Meanwhile, Japan's Minister of Economy, Trade, and Industry, Yoji Muto said,“It is incomprehensible and regrettable that this kind of decision has been made on the grounds of concerns over national security.”
The Japanese government regarded Nippon Steel's plan to acquire U.S. Steel as a deal“that would benefit both countries” as Japanese investment in the U.S. has been on track to continue increasing, Muto said in a statement.
In late 2023, Nippon Steel announced plans to acquire U.S. Steel, which is headquartered in Pennsylvania, one of the key swing states in the 2024 presidential election. Before Biden withdrew from the race, both he and his then-opponent, Donald Trump, had expressed opposition to the acquisition.
Nippon Steel is the world's fourth-largest steelmaker by volume, while U.S. Steel ranks 24th, according to a 2023 tally by the World Steel Association.– NNN-NHK
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