OAN Staff James Myers
11:02am – Monday, January 6, 2025
U.S. Steel and Japan's Nippon Steel filed suit against the U.S. government on Monday, challenging the Biden administration's order to block a roughly $15 billion deal by Japanese companies to buy U.S. steelmakers.
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The lawsuit, filed in federal court in Washington, D.C., accuses Biden and administration officials of corrupting the deal review process and American steelworkers by blocking the deal.
“Nippon Steel and U.S. Steel are disappointed to see this nation's national security apparatus being exploited so clearly and unfairly to win elections and reward political favors,” the companies said. said in a joint statement on Monday.
“Nippon Steel and U.S. Steel are entitled to a fair process and are left with no choice but to challenge the decision and the process that led to it in court.”
The companies also filed a second lawsuit against competitor Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers (USW) President David McCall.
This comes after Biden blocked the merger on Friday after the Committee on Foreign Investment in the United States made the decision after a year-long review process. The president claimed he was trying to halt the merger, citing national security concerns.
“It is my solemn responsibility as President to ensure that America has a strong, domestically owned and operated steel industry that can continue to provide the source of our national strength at home and abroad, now and into the future,” Biden said in a statement. ” he said. “And preventing foreign ownership of this important American company is a fulfillment of that responsibility.”
“A panel of national security and trade experts determined that this acquisition poses a risk to the national security of the United States,” White House press secretary Robin Patterson said in a statement. “President Biden will never hesitate to protect the security, infrastructure, and resiliency of our nation’s supply chains.”
Meanwhile, U.S. Steel CEO David Britt said if Nippon Steel's acquisition of the company falls through, the company will likely close its plants in Monongahela Valley, Pennsylvania and Gary, Indiana. he warned. Japan after the sale is completed.
“We did everything right as a company with Japan,” Britt said. fox business Correspondent Lydia Hu said in an interview on Monday. “We did everything right. The government let us down. They failed because they didn't follow the process. And we're going to right that wrong. They failed our workers. They failed our community. They failed our best ally in Asia. And they failed the rule of law. has encouraged China.”
In addition, USW President David McCall said the union is reviewing the company's claims and will “strongly defend against these baseless allegations.”
“By blocking Nippon Steel's attempted takeover of U.S. Steel, the Biden administration protected America's vital interests, protected national security, and helped preserve the domestic steel industry that supports our nation's critical supply chain.”
Nippon Steel has committed to invest $2.7 billion in U.S. Steel's Mon Valley and Gary plants as part of a modernization project aimed at making the facilities more competitive internationally. It was done after. Nippon-Made also said that if the deal is finalized, it would retain U.S. Steel's name, brand and headquarters and refrain from layoffs until 2026.
U.S. Steel rejected the Cleveland Cliffs' $7 billion takeover offer in 2023 before accepting the Japanese offer.
Nippon Steel and U.S. Steel also said in press releases Monday that Biden used “undue influence to advance a political agenda.”
Meanwhile, President-elect Donald Trump has also vowed to block the deal.
“Why would you want to sell now when tariffs would make U.S. Steel a more profitable and valuable company?” Trump wrote. “Wouldn't it be great to see U.S. Steel, once the greatest company in the world, lead the way to greatness once again? It could all happen quickly!”
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