Nippon Steel, Us Steel Sue Over Blocked Bid

Nippon Steel and U.S. Steel said Monday that they have filed two lawsuits over President Joe Biden’s decision to block the Japanese company’s $14.9 billion acquisition of the Pittsburgh-based steelmaker.

President-elect Donald Trump on Monday also reiterated his opposition to the deal, at least for now, in a post on his social media platform Truth Social. “Why would they want to sell U.S. Steel now when Tariffs will make it a much more profitable and valuable company? Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again? It can all happen very quickly!”

The deal became a central focus of the 2024 presidential election as both sides vied for support from labor union and blue-collar workers, particularly in the Rust Belt. Biden, Trump and Vice President Kamala Harris all voiced opposition to the deal.

The first lawsuit filed in the U.S. Court of Appeals for the District of Columbia Circuit claims the companies’ constitutional right to due process was violated. The case argues that Biden’s decision to block the deal was based on “purely political reasons” and that the Committee on Foreign Investment in the United States, an interagency panel that scrutinizes such deals, failed to review the case on national security grounds as it is supposed to do. They are asking for CFIUS to conduct a new review of the deal.

The second case was filed in U.S. District Court for the Western District of Pennsylvania against Cleveland-Cliffs, its CEO Lourenco Goncalves and United Steelworkers President David McCall. Nippon and U.S. Steel claim the groups illegally colluded to prevent the planned deal, in part to prevent a party other than Cliffs from acquiring U. S. Steel. Cleveland-Cliffs, an Ohio-based steel maker, made a previous, unsuccessful bid to acquire U.S. Steel, which was supported by the steelworkers union. The complaint seeks an injunction to prevent Goncalves and McCall from "engaging in further collusive and anticompetitive behavior," according to a release.

“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,” the companies said in a statement. “Today’s legal actions demonstrate Nippon Steel’s and U.S. Steel’s continued commitment to completing the Transaction.”

Robyn Patterson, a White House spokesperson, defended Biden’s decision in a statement sent to POLITICO: “A committee of national security and trade experts determined this acquisition would create risk for American national security. President Biden will never hesitate to protect the security of this nation, its infrastructure, and the resilience of its supply chains.”

McCall reiterated in a statement that Biden's decision to block the deal “protected vital U.S. interests, safeguarded our national security and helped preserve a domestic steel industry that underpins our country’s critical supply chains.“

"We are reviewing the complaint and will vigorously defend against these baseless allegations,” he added.

Cleveland-Cliffs did not immediately respond to a request for comment.