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Nippon Steel and U.S. Steel Sue Biden Over $14.9 Billion Merger Block, Citing Political Influence

Jan 7, 2025, 06:06 AM

Nippon Steel Corp. and U.S. Steel Corp. have filed lawsuits in U.S. courts to challenge President Joe Biden's order blocking their planned $14.9 billion merger. The lawsuits target Biden and the Committee on Foreign Investment in the United States (CFIUS), alleging unlawful political influence in the decision to ban the acquisition. Nippon Steel's Chairman and CEO Eiji Hashimoto described Biden's order as 'totally unacceptable' and emphasized the company's determination to pursue the acquisition, stating there is no reason or need to give up on their U.S. business. The companies are also seeking damages from Cleveland-Cliffs Inc. and David McCall, president of the United Steelworkers union, accusing them of obstructing the deal with false statements. Hashimoto argued that the acquisition would strengthen U.S. national security by enhancing U.S. Steel's competitiveness. Japanese Prime Minister Shigeru Ishiba and Foreign Minister Takeshi Iwaya expressed regret over the decision, with Ishiba warning it could impact future Japanese investment in the U.S. U.S. Secretary of State Antony Blinken, during a visit to Tokyo, reaffirmed the strength of U.S.-Japan relations despite the controversy.