The Japanese corporation Nippon Steel and the American steel company U.S. Steel have filed two lawsuits following U.S. President Joe Biden’s decision to block a nearly $15 billion deal. This was stated in their joint announcement.
Nippon Steel and U.S. Steel are filing lawsuits to challenge the unlawful interference in the proposed acquisition of U.S. Steel,” the companies said.
The first lawsuit was filed in the U.S. Court of Appeals for the District of Columbia Circuit. It alleges constitutional violations and claims “unlawful political influence, seeking to overturn Biden’s decision.
The second lawsuit was submitted to the U.S. District Court for the Western District of Pennsylvania. It accuses Cleveland-Cliffs’ management and the USW union of “illegal and coordinated actions” aimed at obstructing the deal.
Earlier, Joe Biden blocked the acquisition of U.S. Steel by Nippon Steel, stating that the deal posed a threat to national security. U.S. Steel CEO David Burritt criticized the president’s actions, calling them a “disgrace and a manifestation of political corruption.”
In December of last year, Nippon Steel announced its intention to acquire U.S. Steel for $14.1 billion, aiming to make the American company its subsidiary. However, the White House declared that the deal required thorough scrutiny due to its potential impact on national security and the stability of supply chains.
In the spring, it was reported that most U.S. Steel shareholders supported the sale. By May, both parties confirmed regulatory approval for the deal outside the U.S. In August, Nippon Steel announced plans to invest $2.7 billion in U.S. Steel’s facilities in Pennsylvania and Indiana if the acquisition was finalized.
