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Cleveland-Cliffs CEO Blasts Lawsuit Over Blocked US Steel-Nippon Steel Merger

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Merger,Steel Industry,National Security

Lourenco Goncalves, CEO of Cleveland-Cliffs, criticized a lawsuit filed by U.S. Steel and Nippon Steel alleging that Cleveland-Cliffs and the United Steelworkers union conspired to block their proposed merger. Goncalves termed the lawsuit a 'shameless effort' and stated that the failure of the merger was due to 'self-inflicted disaster' by the involved parties. He emphasized that the deal faced bipartisan opposition and national security concerns, ultimately leading to President Biden's rejection.

CLEVELAND, Ohio -- The CEO of Cleveland-Cliffs weighed in Monday on Nippon Steel’s failed acquisition of U.S. Steel, and a newly filed lawsuit that accuses the Cleveland company of working to block the merger.

Cleveland-Cliffs offered to buy U.S. Steel in 2023 for $7 billion, but the offer was rejected in favor of a competing $15 billion all-cash offer from Nippon Steel. Biden blocked the purchase on Friday on national security grounds. He also noted how Vice President-elect J.D. Vance was among those who urged Biden to reject the deal, which came after a year-long national security review. Goncalves said the security review “underscores the importance of maintaining American control over our country’s critical steelmaking infrastructure.”

The lawsuit filed against Cleveland-Cliffs in the U.S. District Court for the Western District of Pennsylvania was one of two from Nippon and U.S. Steel in the aftermath of Biden’s decision. The other suit, filed in the U.S. Court of Appeals for the District of Columbia, challenges the Biden administration’s decision, claiming it was political and that it violated the companies’ due process rights, the AP reported.“As of this morning, Nippon Steel and U.S.

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