US Steel and Nippon Steel announced they will file joint lawsuits against the US government and others in the wake of President Biden’s move to block the deal. FOX Business’ Lydia Ho with more.
Nippon Steel and US Steel have filed a lawsuit challenging the decision Biden administration An order to block a nearly $15 billion deal for the Japanese company to buy an American steelmaker.
The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, asks the court to vacate an order issued by the Committee on Foreign Investment in the United States and President Biden To prevent sale.
The companies also filed a second lawsuit against rival Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers president David McCall. It accuses them of illegally coordinating to block the deal and undermining US Steel’s ability to compete.
“From the beginning of the process, Nippon Steel and US Steel have engaged in good faith with all parties to emphasize how the deal enhances, not threatens, the national security of the United States, including by revitalizing communities that depend on American steel, strengthening the interests of the United States,” the companies said in a prepared statement on Monday. : “US steel supply chain, strengthening the US domestic steel industry against the Chinese threat.” “Nippon Steel is the only partner willing and able to make the necessary investments.”
US STEEL CEO: Government failed our country after canceling NIPPON STEEL deal
President Biden blocked Nippon Steel Corps’ multibillion-dollar takeover of United States Steel Corp. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
Biden blocked the deal on Friday, citing national security concerns — a rationale that has sparked opposition.
US Steel CEO David Burritt warned that if the company… Acquisition of Nippon Steel Company If the company fails, the company will likely close steel mills in Pennsylvania’s Monongahela Valley and Gary, Indiana, which were scheduled to receive a multibillion-dollar upgrade from Nippon cash after the sale closes.
Nippon Steel logos are displayed at the company’s headquarters in Tokyo, Japan, on March 18, 2019. (Reuters/Yuka Obayashi/Archive Photo/Reuters Photos)
“We did everything right as a company with Nippon,” Burritt told Fox Business correspondent Lydia Ho in an interview Monday. “We did everything right. The government failed us. They failed because they didn’t follow the process. We will right this wrong. They failed our workers. They failed our communities. They failed our country. The best ally in Asia, and they have encouraged China by not Follow the rule of law.”
Does Nippon Steel’s offer to buy American steel threaten national security? Experts weigh in
Nippon Steel has pledged to invest $2.7 billion in US Steel’s Mon Valley Works and Gary Works plants as part of a modernization project aimed at making the facilities more competitive with international rivals. Nippon also said it would maintain its name, brand and headquarters United States steel Refrain from laying off workers until 2026 if the deal is completed.
Before accepting Nippon’s offer, US Steel rejected Cleveland-Cliffs’ $7 billion takeover offer in 2023.
A tugboat pushes a barge near United States Steel Corp.’s Clairton Coke Works facility in Clairton, Pennsylvania, on September 9, 2024. (Justin Merriman/Bloomberg via Getty Images, File/Getty Images)
Nippon and US Steel said in a press release on Monday that Biden used “undue influence to advance his political agenda.”
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However, the companies also face the incoming Trump administration, which has also vowed to block the deal.
Fox Business’ Lydia Ho, Eric Revell and Yael Halon contributed to this report.
This is a new story. Check back for updates.
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