Nippon Steel, US Steel file lawsuits after Biden blocks deal

Nippon Steel, US Steel file lawsuits after Biden blocks deal

The companies say they filed a lawsuit in the US Court of Appeals for the District of Columbia Circuit challenging President Joe Biden’s decision.

Today’s legal actions have demonstrated Nippon Steel’s and US Steel’s continued commitment to completing the transaction. (EPA Images pic)
NEW YORK:
Nippon Steel Corp and US 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 today in a joint statement that they filed a lawsuit in the US 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 US panel to consider the deal on national security grounds.

They also filed a suit in the US District Court for the Western District of Pennsylvania against rival US steelmaker Cleveland-Cliffs Inc, Cliffs’ CEO Lourenco Goncalves, and US Steelworkers union President David McCall.

“Both Nippon Steel and US Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, US national security,” the companies said in the statement.

“Today’s legal actions demonstrate Nippon Steel’s and US Steel’s continued commitment to completing the Transaction,” the companies said.

US Steel shares rose 4% as of 7.25am in pre-market trading in New York.

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