Nippon Steel and US Steel have filed a lawsuit challenging the The Biden administration in order to block the nearly $15 billion deal for the Japanese company to buy American steel.
The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, asks the court to overturn an order by the Committee on Foreign Investment in the U.S. and President Biden to block the sale.
The companies also filed a second lawsuit against competitor Cleveland-Cliffs, its CEO Lourenco Goncalves and United Steelworkers President David McCall. It accuses them of illegally coordinating to prevent the transaction and undermine US Steel’s ability to compete.
“From the beginning of the process, both Nippon Steel and US Steel have engaged in good faith with all parties to emphasize how the transaction will enhance, not threaten, the national security of the United States, including by revitalizing the communities that depend on American steel, strengthening the American steel supply chain and strengthening the U.S. domestic steel industry against the threat from China,” the companies said in a prepared statement Monday. “Nippon Steel is the only partner willing and able to make the necessary investments.”
US STEEL CEO: GOVERNMENT FAILED OUR COUNTRY AFTER NIPPON STEEL AXEIT DEAL
Biden blocked the deal on Friday, citing national security concerns, a rationale that has prompted pushback.
US Steel CEO David Burritt warned that if the company acquisition by Nippon Steel Failing that, the company would likely close steel mills in Pennsylvania’s Monongahela Valley and Gary, Indiana, which were slated to receive a multibillion-dollar upgrade with cash provided by Nippon after the sale is completed.
“We did everything right as a company with Nippon,” Burritt told Fox Business correspondent Lydia Hu in an interview Monday. “We did everything right. The government failed us. They failed because they didn’t follow the process. And we’re going to right that wrong. They failed our workers. They failed our communities. They failed our country. They failed our country. Asia’s best ally And they have emboldened China by not following the rule of law.”
IS NIPPON STEEL’S OFFER TO BUY STEEL FROM US A THREAT TO NATIONAL SECURITY? EXPERTS THINK
Nippon Steel had pledged to invest $2.7 billion in US Steel’s Mon Valley Works and Gary Works as part of a modernization project aimed at making the facilities more competitive with international rivals. Nippon also said it would retain the name, brand and headquarters of US steel and refrain from layoffs until 2026 if the deal had gone through.
Before accepting Nippon’s bid, US Steel rejected Cleveland-Cliffs’ $7 billion 2023 buyout offer.
Nippon and US Steel said in a press release Monday that Biden used “undue influence to advance his political agenda.”
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The companies, however, also face the incoming Trump administration, which has also vowed to block the deal.
Lydia Hu, Eric Revell and Yael Halon of Fox Business contributed to this report.
This is a new story; check back for updates.