Steel Companies Sue Biden Administration Over Blocked Merger

WASHINGTON — Nippon Steel and U.S. Steel are filing a federal lawsuit challenging the Biden administration's decision to block a proposed nearly $15 billion deal for Nippon to acquire Pittsburgh-based U.S. Steel..

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.

Biden on Friday decided to stop the Nippon takeover — after federal regulators deadlocked on whether to approve it — because “a strong domestically owned and operated steel industry represents an essential national security priority. ... Without domestic steel production and domestic steel workers, our nation is less strong and less secure," he said in a statement.

While administration officials have said the move is unrelated to Japan's relationship with the U.S. — this is the first time a U.S. president has blocked a merger between a U.S. and Japanese firm.The president's decision to block the deal comes after the Committee on Foreign Investment in the United States, known as CFIUS, failed to reach consensus on the possible national security risks of the deal last month, and sent a long-awaited report on the merger to Biden.

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Steel Companies Sue Biden Administration Over Blocked MergerNippon Steel and U.S. Steel filed a lawsuit challenging the Biden administration's decision to block their proposed $15 billion merger, arguing it was a political decision that violated their due process rights. The companies maintained the deal would benefit national security by revitalizing communities, bolstering the steel supply chain and strengthening the domestic industry against China. Biden blocked the takeover, citing the importance of a strong domestically owned and operated steel industry for national security.
출처: SooToday - 🏆 8. / 85 더 많은 것을 읽으십시오 »

Biden to Block Nippon Steel's Acquisition of U.S. SteelPresident Joe Biden is expected to block Nippon Steel's $1.4 billion acquisition of U.S. Steel, citing national security concerns. The Committee on Foreign Investment in the United States (CFIUS) had reviewed the deal for months and referred the decision to Biden after failing to reach a consensus. While some of Biden's advisors expressed concerns about potential damage to U.S.-Japan relations, the president ultimately decided to prioritize national security interests.
출처: globeandmail - 🏆 5. / 92 더 많은 것을 읽으십시오 »

Biden will decide on US Steel acquisition after influential panel fails to reach consensusWASHINGTON (AP) — A powerful government panel on Monday failed to reach consensus on the possible national security risks of a nearly $15 billion proposed deal for Nippon Steel of Japan to purchase U.S.
출처: SooToday - 🏆 8. / 85 더 많은 것을 읽으십시오 »