Japanese Nippon Steel Corp plans to file lawsuit against US after blocking acquisition
(MENAFN) Japan’s Nippon Steel Corp is planning to file a lawsuit following U.S. President Joe Biden’s decision to block its Acquisition of U.S. Steel Corp. According to local media reports, Nippon Steel and U.S. Steel intend to challenge the decision in court, arguing that Biden failed to provide enough evidence to justify the claim that the acquisition would pose a national security threat. Additionally, they contend that the president’s action violates due process protections under both the U.S. Constitution and the law governing the Committee on Foreign investment in the U.S. (CFIUS).
The legal dispute stems from Biden's recent announcement that he had decided to block the USD14.1 billion sale, citing national security risks. He called on both companies to completely abandon the acquisition plan. In response, the two companies issued a joint statement accusing the U.S. authorities’ review process of being manipulated to further Biden's political agenda. They emphasized their intention to take all necessary legal actions to protect their rights in this matter.
Japan’s Minister of Economy, Trade, and Industry, Yoji Muto, expressed his disapproval of the decision, calling it "incomprehensible and regrettable." He stated that Japan considered Nippon Steel's proposed purchase of U.S. Steel as beneficial to both nations, especially given the increasing trend of Japanese investment in the U.S.
Nippon Steel’s plan to acquire U.S. Steel was announced in late 2023. U.S. Steel, headquartered in Pennsylvania, is located in a key swing state for the 2024 presidential election, which may have influenced political opposition from both Biden and his then-opponent, Donald Trump. As the world’s fourth-largest steelmaker by volume, Nippon Steel’s move to acquire the 24th-ranked U.S. Steel marks a significant development in the global steel industry.
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