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US Steel and Nippon Steel have announced they are filing lawsuits against the US government and others following President Biden’s move to block the deal. FOX Business’ Lydia Hu and more.
Nippon Steel and US Steel have filed a counterclaim Biden Administration to block a $15 billion deal for a Japanese company to buy an American steelmaker.
The lawsuit, which has been filed in the US Court of Appeals for the District of Columbia Circuit, asks the court to set aside the ruling of the US Foreign Exchange Commission and President Biden forbid the sale.
The company filed a second lawsuit against its partner Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall. It accuses them of colluding illegally to block the sale and reduce US Steel’s ability to compete.
“From the beginning of the process, Nippon Steel and US Steel have been in good faith with all parties to ensure that the Transaction will support, not threaten, the national security of the United States, including the restructuring of areas that depend on American steel, strengthening the national security. Delivery methods American steel, and to strengthen American manufacturing industries against the threat from China,” the companies said in a prepared statement on Monday. “Nippon Steel is the only partner that is willing and able to make the necessary investment.”
US STEEL CEO: GOVERNMENT HAS FAILED OUR COUNTRY AFTER NIPPON STEEL PROJECT
President Biden blocked Nippon Steel Corp from taking billions from United States Steel Corp. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
Biden canceled the deal on Friday, citing national security concerns — reasons that have prompted the pushback.
US Steel CEO David Burritt warned that if the company Purchased by Nippon Steel Further, the company may close steel mills in Pennsylvania’s Monongahela Valley and Gary, Indiana, which were due to receive a multibillion-dollar upgrade from Nippon’s investment after the sale.
The logos of Nippon Steel Corp. is shown at the company’s headquarters in Tokyo, Japan, on March 18, 2019. (REUTERS/Yuka Obayashi/File Photo/Reuters)
“We did everything right as a company with Nippon,” Burritt told Fox Business reporter Lydia Hu in an interview Monday. “We did everything right, when the government failed us, it failed because they did not follow the plan. And we will correct the mistake, they failed our workers, they failed our communities, they failed our country, they failed our country. They are the best friend in Asia and they have encouraged China by not following the rules.
IS NIPPON STEEL’S DESIRE TO BUY GOODS TO START THE WORLD’S HEALTH? THE EXPERTS ARE TRYING
Nippon Steel has pledged to sell US Steel’s Mon Valley Works and Gary Works for $2.7 billion as part of an ongoing effort to make the facilities more competitive with international rivals. Nippon also said it will keep the name, brand and capital of US Steel and avoid layoffs until 2026 when the contract expires.
Before accepting Nippon’s offer, US Steel rejected Cleveland-Cliffs’ offer of $7 billion in 2023.
A tugboat pushed a barge near the United States Steel Corp. site. Clairton Coke Works in Clairton, Pennsylvania, on Sept. 9, 2024. (Justin Merriman/Bloomberg via Getty Images, File/Getty Images)
Nippon and US Steel said in a press release Monday that Biden used “undue influence to advance his political agenda.”
The industry, however, is also facing challenges from the incoming Trump administration, which has also vowed to curb the deal.
Trump on Monday questioned the proposed sales in a post on Truth Social.
“Why would they want to sell US Steel now when Tariffs will make it a more profitable and valuable company?” Trump wrote. “Wouldn’t it be great to have US Steel, once the biggest company in the world, take the lead again? It can all happen so fast!”
Fox Business’ Lydia Hu, Eric Revell and Yael Halon contributed to this story.
This is a new story; see also updates.
