Nippon Steel, US Steel File Lawsuits After Biden Blocks Deal
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Nippon Steel Corp. and U.S. Steel Corp. jointly filed lawsuits in a last-ditch effort to preserve the planned merger of the companies, which was blocked last week by President Joe Biden.
The companies said Jan. 6 in a joint statement that they filed a lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit challenging Biden’s decision and what they say is the failure of the Committee on Foreign Investment in the United States panel to consider the deal on national security grounds.
They also filed a suit in the U.S. District Court for the Western District of Pennsylvania against rival U.S. steelmaker Cleveland-Cliffs Inc., Cliffs’ CEO Lourenco Goncalves, and U.S. Steelworkers union President David McCall.
“Both Nippon Steel and U.S. 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 the statement. “Today’s legal actions demonstrate Nippon Steel’s and U.S. Steel’s continued commitment to completing the transaction.”
U.S. Steel shares rose 4% as of 7:25 a.m. in pre-market trading in New York.
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