U.S. Steel and Japanese steelmaker Nippon Steel filed a lawsuit against the U.S. government on Monday in a last-ditch effort to move forward with integration, but President Biden blocked the lawsuit on Friday, citing national security concerns.
A new lawsuit accuses Biden of intervening in the merger review process for political gain and trying to curry favor with the United Steelworkers.
The companies filed separate lawsuits Monday, alleging that USW illegally colluded with Cleveland-Cliffs, a steel maker that had previously tried to buy U.S. Steel, to undermine the proposed deal.
“From the beginning of the process, both Nippon Steel and U.S. Steel were concerned that this transaction would threaten U.S. national security, including by revitalizing communities that rely on U.S. steel and strengthening U.S. national security.” We have worked in good faith with all stakeholders to emphasize how to strengthen the U.S. steel supply chain and strengthen the U.S. domestic steel industry against the Chinese threat.'' stated in a joint statement About the lawsuit.
The Hill has reached out to the White House, USW and the Cleveland Cliffs for comment.
Biden said late last week that his decision to block foreign ownership of “significant American companies” was a matter of national security.
“It is my solemn mission 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. It's a responsibility.” .
Many members of Congress and President-elect Trump also opposed the merger. Labor groups praised the Biden administration's decision to block the proposed deal, which had been roundly criticized by many in big business circles.
“Make no mistake about it, this investment ensures a great future for U.S. Steel, our employees, our communities, and our country,” U.S. Steel President and CEO David Britt said in a statement Friday. '' and vowed to “fight against President Biden's political corruption.'' ”
