US Steel, Nippon sue Biden administration over decision to block merger
Al Jazeera
The lawsuit alleges US President Joe Biden violated the companies’ right to a fair merger review.
Nippon Steel and US Steel have filed a federal lawsuit in the United States challenging the Biden administration’s decision to block Nippon’s proposed $15bn acquisition of the Pittsburgh company. The companies say the head of the United Steelworkers union and a rival steelmaker worked together to scuttle the buyout.
The lawsuit, filed on Monday, alleges US President Joe Biden prejudiced the decision of the Committee on Foreign Investment in the US (CFIUS) which scrutinises foreign investments for national security risks, and violated the companies’ right to a fair review.
In moving to block the transaction on Friday, Biden said US companies producing a large amount of steel need to “keep leading the fight on behalf of America’s national interests”, though Japan, where Nippon is based, is a strong ally. This is the first time a US president has blocked a merger between a US and Japanese firm.
In separate lawsuits filed in the US Court of Appeals for the District of Columbia and the US District Court for the Western District of Pennsylvania, the steelmakers allege that it was a political decision made by the Biden administration that had no rational legal basis.
“Nippon Steel and US Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, United States national security,” the companies said in a prepared statement Monday.
