Breaking News

Nippon and US Steel are suing the government over the blocked deal


Nippon Steel and US Steel are suing the U.S. government for blocking the takeover, claiming President Joe Biden “ignored the rule of law to curry favor” with the union.

The two companies also alleged that President Biden, who is entering the final weeks of his administration, blocked Nippon Steel from buying US Steel to pursue his political agenda.

In rejecting the proposed deal on FridayPresident Biden said a strong domestically owned steel industry is critical to national security and resilient supply chains, including the automotive and defense industries.

If the $14.9bn (£11.8bn) deal goes through, it will create one of the world’s largest steel plants outside of China.

The takeover has been in limbo since it was first announced in December 2023.

In one lawsuit, Nippon Steel and US Steel asked the court to overturn a review process by the Committee on Foreign Investment in the U.S., which has the authority to review foreign takeovers of U.S. companies, saying it “failed to properly implement the faith-based, national security-focused regulatory review process “.

In addition, the companies are also suing the president of the United Steelworkers union, David McCall, and the CEO of rival Cleveland-Cliffs Steel, Lorenzo Goncalves, for “their unlawful and coordinated actions aimed at preventing the transaction.”

On Friday, the United Steelworkers union said there was “no doubt” that blocking the takeover was “the right move for our members and our national security.”

The union has accused Nippon of undermining the U.S. steel industry for decades with measures that include dumping products on the U.S. market.

Nippon Steel and US Steel said they “engaged in good faith with all parties” to demonstrate the deal would “enhance, not threaten, the national security of the United States” and to strengthen the US domestic steel industry “against the threat from China.” . .

They also reiterated that Nippon is ready to invest $2.7 billion in Pittsburgh-based US Steel.

President-elect Donald Trump also said he would block the deal. He posted on Truth Social on Monday saying, “Why would they want to sell US Steel now that the tariffs will make it a much more profitable and valuable company?”

Earlier on Monday, Japanese Prime Minister Shigeru Ishiba expressed concern over the US decision to block the takeover and the impact it could have on trade relations between the two G7 countries.

“Unfortunately, it is true that we have heard concerns expressed by the Japanese industry regarding future investment between Japan and the US. We must view this matter as a serious matter,” said Mr. Ishiba.

He added that while it was inappropriate for his government to comment on individual companies: “We must insist on explaining why there are security concerns, otherwise there will be no progress in future discussions.”



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button