Nippon Steel and rival US Steel deny shock lawsuit claims: ‘We are armored to the teeth’

After being named in a separate lawsuit by Nippon Steel and US Steel against the Biden administration’s decision to block the nearly $15 billion takeover, the Cleveland-Cliffs CEO spoke out about the racketeering and anti-competition allegations.

“My response will be presented in court. I never had much time to prepare for a lawsuit that I knew was coming. So we are very well protected and the Japanese will learn… about the judicial process,” he added. “In the United States, it is a two-way street, and we will discuss this in court,” Lourenco Goncalves said in an exclusive interview. In “Morning with Maria” Tuesday.

He continued: “I think no other deal has been scrutinized more than this one. They actually went through three 90-day analysis periods.” “Some were in favor of the deal and some were not in favor of it. The law says in such cases, the deal goes to the President of the United States, and the President of the United States makes the decision. And that is exactly what happened.”

Last Friday, President Biden announced his decision to block the sale of US Steel to the Japanese-owned Nippon Steel, which is valued at approximately $15 billion. My steel company File a joint lawsuit In response, the US government pushed back, alleging that Biden used “undue influence to advance his political agenda.”

US STEEL CEO: Government failed our country after canceling NIPPON STEEL deal

A separate lawsuit alleges that Cleveland Cliffs, Goncalves and United Steelworkers (USW) President David McCall illegally coordinated to block the deal and undermine US Steel’s ability to compete.

Before accepting Nippon’s offer, US Steel rejected Cleveland-Cliffs’ $7 billion takeover offer in 2023.

“Let’s fix this record once and for all: my initial bid was $7 billion, and the auction lasts about six months,” Goncalves explained. “Through the auction, the stock rose to $54. And then my number was magically beaten by a dollar in the final hours.”

“The point is that this deal was bought illegally,” the CEO said before clarifying that Cleveland-Cliffs no longer had any interest in buying US Steel.

“The situation has changed. The market backdrop has changed. We have changed A new boss is coming to town…Trump immediately said the deal would be blocked immediately. “It took Biden more than a year to do what he had to do, and now the Japanese seem surprised by the result,” Goncalves added.

A White House spokesman explained last week that Biden’s decision was made on the basis of national security, and that he “will never hesitate to protect the security of this nation, its infrastructure, and the resiliency of its supply chains.”

Despite legal action by Nippon and US Steel, Goncalves believes the deal has no chance of being revived.

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“Nippon Steel cannot and will not buy US Steel. It is US Steel, so an American company must remain American,” the CEO said. “The deal was blocked and a lawsuit was filed President of the United States It’s a bad idea.”

In a prepared statement on Monday, Nippon Steel and US Steel said: “From the beginning of the process, Nippon Steel and US Steel have engaged in good faith with all parties to emphasize how the transaction enhances, not threatens, the national security of the United States.” , including by revitalizing communities that depend on American steel, strengthening the American steel supply chain, and strengthening the American domestic steel industry against the threat posed by China… Nippon Steel is the only partner willing and able to make the necessary investments.

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FOX Business’ Stephen Sorace contributed to this report.