US Steel, Nippon React to Biden Decision With a Lawsuit

Nippon Steel and US Steel filed a federal lawsuit challenging a Biden administration decision to block Nippon's proposed $15 billion acquisition of the Pittsburgh company and said that the head of United Steelworkers union and a rival steelmaker worked together to scuttle the deal. Biden said Friday that US companies producing a large amount of steel need to "keep leading the fight on behalf of America's national interests," though Japan, where Nippon is based, is a strong ally. In separate lawsuits filed Monday in the US Court of Appeals for the District of Columbia and the US District Court for the Western District of Pennsylvania, the steelmakers allege that it was a political decision made by the Biden administration that had no rational legal basis, reports the AP.

• From US Steel, Nippon: The companies "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," the companies said Monday. Nippon and US Steel argue that the review process was manipulated so that the outcome would support a decision they say Biden had already made. The companies said Biden used "undue influence to advance his political agenda."
• Busy, busy: In a separate lawsuit filed on Monday, the companies accused rival Cleveland-Cliffs Inc. and its CEO, Lourenco Goncalves, in coordination with United Steelworkers head David McCall, of "engaging in a coordinated series of anticompetitive and racketeering activities" to block the deal. Cleveland-Cliffs offered to buy US Steel in 2023 for $7 billion. US Steel rejected the offer and later accepted a nearly $15 billion all-cash offer from Nippon.
• Better luck next administration? No. President-elect Trump last month underscored his intention to block the deal, and pledged to use tax incentives and tariffs to strengthen the iconic American steelmaker.