Nippon Steel and US Steel filed a lawsuit Monday against the Biden administration. The companies are challenging the decision to block Nippon’s proposed acquisition of US Steel. The lawsuit, filed in the US Court of Appeals for the District of Columbia, claims the decision was political and violated their due process rights.
US President Joe Biden blocked the nearly $15 billion deal on Friday. The decision followed a split decision from the Committee on Foreign Investment in the United States (CFIUS) regarding potential national security risks. Nippon Steel had pledged $2.7 billion in investments for US Steel facilities in Indiana and Pennsylvania. The company also promised to maintain U.S. production capacity for ten years, pending government approval for any changes.
Biden justified his decision, stating, “a strong domestically owned and operated steel industry represents an essential national security priority. … Without domestic steel production and domestic steel workers, our nation is less strong and less secure.” This marks the first time a U.S. president has blocked a merger between American and Japanese companies. This action occurred weeks before the end of Biden’s current term. The CFIUS report on the merger, delivered to Biden last month, led to a 15-day period for his final decision.
