Nippon Steel and U.S. Steel Sue Biden Administration Over Blocked Merger

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Merger,Steel Industry,National Security

Nippon Steel and U.S. Steel filed a federal lawsuit challenging President Biden's decision to block their proposed $15 billion merger, alleging a political motivation and violation of due process. The companies argue the deal would benefit U.S. national security, revitalize communities, and bolster the domestic steel industry against Chinese competition. Biden blocked the merger, citing the importance of a strong domestically owned steel industry for national security.

FILE - This is a portion of US Steel's Edgar Thomson Works in Braddock, Pa., on Sunday, Apr., 28, 2024.

The suit, filed Monday in the U.S. Court of Appeals for the District of Columbia, alleges that it was a political decision and violated the companies' due process. Nippon Steel had promised to invest $2.7 billion in U.S. Steel’s aging blast furnace operations in Gary, Indiana, and Pennsylvania’s Mon Valley. It also vowed not to reduce production capacity in the United States over the next decade without first getting U.S. government approval.

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