WORLD
US Steel, Nippon Steel file lawsuit against US President’s order blocking merger deal
- IBJ Bureau
- Jan 07, 2025
US Steel and Nippon Steel have filed a lawsuit against US President Joe Biden’s order that has blocked a $14.9-billion buyout of the American steelmaker by the Japanese company, the companies have said.
The lawsuit has asked the court to set aside the review process of the Committee on Foreign Investment in the US and Mr Biden’s order, citing “violation of the Constitutional guarantee of due process and statutory procedural requirements, as well as unlawful political influence”.
The case was filed in US Court of Appeals for the District of Columbia Circuit.
The companies have also filed a second lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves and USW union President David McCall “for their illegal and coordinated actions” aimed at preventing the deal.
Last week, Mr Biden had blocked the proposed purchase on national security concerns, dealing a potentially fatal blow to the contentious plan after a year of review.
Nippon Steel had paid a hefty premium to clinch the deal in December 2023 in an auction, topping rivals, including Cleveland-Cliffs, ArcelorMittal and Nucor, in a bet on Mr Biden’s infrastructure spending bill.
Political and union resistance to the deal has amplified in recent months. Mr Biden and President-elect Donald Trump, who is set to take office later this month, have opposed the deal.
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