Nippon Steel and US Steel File Lawsuits Over Blocked Merger

Nippon Steel Corp. and United States Steel Corp. have filed lawsuits in an effort to overturn President Joe Biden’s decision to block their planned merger.

Legal Action Against Biden Administration and Rivals

The companies announced in a joint statement that they filed a lawsuit with the US Court of Appeals for the District of Columbia Circuit, challenging the Biden administration's rejection of the merger. They argue that the Committee on Foreign Investment in the United States (CFIUS) failed to properly evaluate the deal's implications on national security.

Additionally, Nippon Steel and US Steel filed a separate suit in the US District Court for the Western District of Pennsylvania against Cleveland-Cliffs Inc., its CEO Lourenco Goncalves, and United Steelworkers union President David McCall.

Defense of the Merger

“Both Nippon Steel and US Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, United States national security,” the companies stated. They emphasized their commitment to pursuing the merger despite regulatory and competitive obstacles.

Market Reaction

Following the announcement, US Steel shares rose 4% in pre-market trading in New York as of 7:25 am.

The legal battles highlight the high stakes for both companies as they seek to challenge government and industry opposition to the merger.

 

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