Nippon Steel and United States Steel have jointly filed a lawsuit against the U.S. government, challenging President Biden’s decision to block Nippon Steel’s acquisition of the American steelmaker. The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, seeks a review of the deal by the Committee on Foreign Investment in the United States (CFIUS). The companies contend that President Biden’s order constitutes “unlawful political interference,” according to reports from NHK, Japan’s public broadcaster.
Simultaneously, a second lawsuit has been filed against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers (USW) union President David McCall. This action alleges illegal and coordinated efforts by these parties to thwart the acquisition.
The Biden administration’s decision, announced Friday, cited national security risks as the reason for blocking the $14.1 billion sale. President Biden urged both companies to permanently abandon the acquisition plan. This move has prompted strong reactions from Japanese officials. Prime Minister Shigeru Ishiba expressed concern about potential repercussions for bilateral trade and vowed to seek clarification regarding the cited national security concerns. He acknowledged growing anxieties within Japanese business circles about future U.S.-Japan investments.
Echoing the Prime Minister’s concerns, Japan’s Economy, Trade and Industry Minister Yoji Muto described the President’s decision as “extremely regrettable and hard to understand.” He reiterated the Japanese government’s commitment to addressing the concerns of businesses in both countries.
Nippon Steel and US Steel initially agreed to the takeover in December 2023. After CFIUS failed to reach a consensus on the deal, it was referred to President Biden for final decision. Nippon Steel, the world’s fourth-largest steel producer, is scheduled to hold a press conference on Tuesday to further detail its legal strategy.