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U.S. Steel-Nippon Steel deal blocked
Why Biden blocked the U.S. Steel deal with Japan’s Nippon Steel
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U.S. Steel and Nippon Steel filed lawsuits on Monday over President Joe Biden’s decision to stop the Japanese company’s proposed nearly $15 billion takeover of its Pittsburgh-based rival. In a joint statement announcing the suit filed in the U.S. Court of Appeals for the District of Columbia the steel companies allege that Mr. Biden’s Jan. 3 decision to block the deal was made for political reasons that violated their due process.”Both Nippon Steel and U. S. Steel have engaged in good faith with all parties to underscore how the transaction will enhance, not threaten, United States national security,” they stated. “Today’s legal actions demonstrate Nippon Steel’s and U.S. Steel’s continued commitment to completing the transaction.”A second lawsuit aimed at domestic rival Cleveland-Cliffs’ CEO Lourenco Goncalves and U.S. Steelworkers President David McCall was filed in the U.S. District Court for the Western District of Pennsylvania, the companies stated. Mr. Biden moved to halt the acquisition after federal regulators deadlocked on whether to approve it, saying “a strong domestically owned and operated steel industry represents an essential national security priority.”
President-elect Donald Trump weighed in as well, questioning the wisdom of the sale given his plans.”Why would they want to sell U.S. Steel now when tariffs will make it a much more profitable and valuable company? Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again? It can all happen very quickly!” he posted on his social media site, Truth Social.Shares of U.S. Steel were up more than 4% in pre-marketing trading on the New York Stock Exchange.
The Associated Press
contributed to this report.
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Kate Gibson
Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.
