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Nippon Steel to Sue U.S. Government Over Biden's $14.9 Billion U.S. Steel Deal Block on National Security Grounds

Jan 4, 2025, 11:00 PM

Nippon Steel Corp. plans to sue the U.S. government following President Joe Biden's decision to block its proposed $14.9 billion acquisition of United States Steel Corp. The move by Biden, announced on January 3, 2025, was justified on national security grounds, a rationale that both companies have criticized as a violation of due process and law. The acquisition was seen as a strategic move for Nippon Steel to expand its global presence, particularly in the U.S. market. The decision has drawn criticism from various quarters, including Japanese industry minister Yasutoshi Muto, who described it as 'incomprehensible and regrettable.' Seiji Kihara, a prominent member of Japan's Liberal Democratic Party, also expressed disappointment, emphasizing the need for the acquisition from an economic security perspective to counter China's dominance in the steel industry. The block has raised concerns about future U.S.-Japan investment relations and the broader implications for Nippon Steel's growth strategy, which now faces potential overhaul if the acquisition fails.