Nippon Steel and US Steel Sue Biden, Cleveland-Cliffs Over Blocked $15 Billion Merger

Jan 6, 2025, 12:33 PM

Nippon Steel and US Steel have jointly filed multiple lawsuits challenging President Joe Biden's decision to block their proposed $15 billion merger. The Japanese and American steelmakers allege that the Biden administration engaged in 'illegal interference,' unlawfully politicizing the review process that led to the deal's blockage. The companies are seeking to invalidate the presidential order and the Committee on Foreign Investment in the United States (CFIUS) review process. The lawsuits, filed in a U.S. federal court, also name Cleveland-Cliffs, a rival U.S. steel producer, and the head of the United Steelworkers union, accusing them of improper interference. The proposed acquisition, which would have created the world's third-largest steelmaker by crude steel production, was blocked last week on national security grounds. The Biden administration stated that the deal posed a threat to U.S. interests, prompting the steelmakers to mount a legal challenge to preserve the transaction.