U.S. Steel, Nippon Steel file lawsuit against US government for blocking acquisition
(MENAFN) U.S. Steel and Nippon Steel have filed a lawsuit against the U.S. government, claiming that President Joe Biden unlawfully blocked Nippon Steel’s USD14.9 billion Acquisition bid for U.S. Steel. The companies argue that the rejection was based on a "bogus" national security review and are asking a federal appeals court to overturn Biden’s decision. They seek an opportunity for a new national security review, free from what they describe as Political interference, to determine the fate of the merger.
The lawsuit alleges that Biden overstepped his authority by undermining the recommendation of the Committee on Foreign Investment in the United States (CFIUS), the body responsible for assessing foreign investments for national security risks. According to the companies, Biden’s actions violated their right to a fair and impartial review process. They believe the rejection was politically motivated, as it came during a highly charged political environment leading up to the U.S. presidential election.
The proposed merger has sparked significant political debate, particularly in the swing state of Pennsylvania, where U.S. Steel is headquartered. Both President Biden and Republican President-elect Donald Trump have publicly opposed the deal, vowing to keep U.S. Steel under American ownership. The issue has become a focal point in their efforts to appeal to voters in Pennsylvania, further politicizing the transaction.
Opposition to the merger has also come from United Steelworkers union president David McCall, who has voiced concerns about foreign ownership. Although Nippon Steel offered to relocate its U.S. headquarters to Pittsburgh and pledged to uphold existing agreements with the union, both Biden and Trump remain steadfast in their opposition. The companies contend that Biden’s rejection of the deal was a calculated move to gain favor with Pennsylvania’s United Steelworkers leadership in his campaign for re-election.
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