Nippon Steel, US Steel sue over Biden's blocking of $15bn deal
Nippon Steel and US Steel have filed a federal lawsuit in the United States, it emerged on Monday, contesting the Biden administration's decision to block a proposed $15bn acquisition of US Steel by the Japanese steelmaker.
The lawsuit, submitted to the US Court of Appeals for the District of Columbia, alleged that the decision was politically motivated and violated the companies' due process rights.
According to the Independent, the Biden administration's move was the first instance of a US president blocking a merger between an American and a Japanese firm.
The decision, announced after the Committee on Foreign Investment in the United States (CFIUS) failed to reach consensus on the deal, underscored concerns about national security.
In a statement, president Biden emphasised the importance of a robust domestic steel industry, stating that “without domestic steel production and domestic steel workers, our nation is less strong and less secure”.
Nippon Steel had pledged significant investments as part of the acquisition, including $2.7bn to modernize US Steel's aging blast furnace facilities in Indiana and Pennsylvania.
The company also assured it would maintain current production capacity stateside for at least a decade, subject to government oversight.
Despite those commitments, the administration still blocked the deal, citing national security priorities.
While officials denied that the decision reflected broader tensions between Tokyo and Washington, the move came as president Biden prepared to leave office in the coming weeks.
Reporting by Josh White for Sharecast.com.