Nippon Steel and US Steel Sue Biden Over Blocked Merger

President Joe Biden speaks at an event to award the Presidential Citizens Medal to recipients in the East Room at the White House on Jan 2, 2025, in Washington. (Photo: AP/Mark Schiefelbein)NEW YORK: Nippon Steel and US Steel filed suit on Monday (Jan 6) over President Joe Biden's decision to block the Japanese giant's acquisition of the US company.

The companies said in a statement that they initiated the legal action in the US court of appeals in Washington challenging the review process for the acquisition, claiming Biden, who is leaving office on Jan 20, had improperly used his influence and blocked the deal 'for purely political reasons'. The companies filed their lawsuits 'to remedy the ongoing illegal interference with Nippon Steel's acquisition of US Steel', they said, adding that the litigation intends to show that 'President Biden ignored the rule of law to gain favor with (workers' unions) and support his political agenda'. Biden had criticized the US$14.9 billion deal for months, while holding off on a move that could hurt ties with Tokyo. But the outgoing president - who made the rebuilding of the US manufacturing base a major goal of his administration - announced on Friday that he was blocking the deal. The companies said the body reviewing the deal, the Committee on Foreign Investment in the United States (CFIUS) 'failed to conduct a good faith, national security-focused regulatory review process'. The transaction was a prominent element of the 2024 presidential campaign, given US Steel's ties to Pennsylvania, a politically critical battleground state and cradle of the American steel industry. In an interview with Nikkei business daily, Nippon Steel vice chairman Takahiro Mori said his company 'will not back down after being treated unreasonably. We will fight tooth and nail'. The CFIUS review process 'lacked integrity', he said, adding that 'the decision was left to the president (Biden) without any substantive consultation' with the companies

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