US Steel and Nippon file lawsuit over Biden’s order blocking $14.9bn deal
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Companies say Biden’s blocking of the proposed purchase over national security concerns violates constitution. US Steel and Nippon Steel have filed a lawsuit against Joe Biden’s order that blocked the $14.9bn buyout of the American steelmaker by the Japanese company, they said on Monday.
The lawsuit asked the court to set aside the review process of the committee on foreign investment in the US and Biden’s order, citing “violation of the constitutional guarantee of due process and statutory procedural requirements, as well as unlawful political influence”.
The case was filed in US court of appeals for the District of Columbia circuit. The companies also filed a second lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves, and David McCall, the USW union president, “for their illegal and coordinated actions” aimed at preventing the deal.
Last week, Biden blocked the proposed purchase on national security concerns, dealing a potentially fatal blow to the contentious plan after a year of review. Nippon Steel paid a hefty premium to clinch the deal in December 2023 in an auction, topping rivals including Cleveland-Cliffs, ArcelorMittal and Nucor , in a bet on Biden’s infrastructure spending bill.
Political and union resistance to the deal had amplified in recent months. Biden and Donald Trump, who is set to take office later this month, had opposed the deal. The White House had urged for a scrutiny of the agreement, given US Steel’s core role in producing a material that is critical to national security.
