Nippon Steel and US Steel sue Biden administration over blocked merger
U.S. Steel and Japanese steelmaker Nippon Steel sued the U.S. government Monday in a last-ditch effort to move forward with their merger, which President Biden blocked Friday over national security concerns.
The new lawsuit accuses Biden of interfering in the merger review process for political gain and to curry favor with the United Steelworkers Union (USW).
The companies in a separate lawsuit on Monday alleged the USW illegally colluded with steelmaker Cleveland-Cliffs, which previously tried to purchase U.S. Steel, to undermine the proposed deal.
“From the outset of the 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, including by revitalizing communities that rely on American steel, bolstering the American steel supply chain, and strengthening America’s domestic steel industry against the threat from China,” U.S. Steel and Nippon Steel said in a joint statement on the litigation.
The Hill has contacted the White House, USW and Cleveland-Cliffs for comment.
Biden said late last week that his decision to block foreign ownership of a “vital American company” was a matter of national security.
“It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad,” Biden said in a statement.
Many lawmakers and President-elect Trump also opposed the merger. Labor groups celebrated the Biden administration's decision to block the proposed deal, which was sharply criticized by many in big business.
“Make no mistake: this investment is what guarantees a great future for U.S. Steel, our employees, our communities, and our country," U.S. Steel President and CEO David Burritt said in a statement Friday, pledging to "fight President Biden’s political corruption."