US Steel, Nippon Steel Sue US Government Over Blocked $14.1B Deal | Global News Avenue

United States Steel Corporation (X) and Nippon Steel said on Monday they were suing the U.S. government over President Joe Biden’s actions lockdown last week The iconic American company was sold to a Japanese company for $14.1 billion, citing national security concerns.

The lawsuit marks an effort by the two companies to save the deal. They filed a lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit, alleging that Biden’s order violated “constitutional guarantees of due process and legal procedural requirements” and exerted “unlawful political influence.”

U.S. Steel and Nippon Steel say they want court to “put on hold” Biden’s blocking order and U.S. Steel’s review process Committee on Foreign Investment in the United States (CFIUS)An agreement could not be reached last month on whether to allow Nippon Steel’s takeover to proceed.

Separate lawsuits against Cleveland-Cliffs, its CEO and president of the Steelworkers union

The companies also said they were suing domestic rival Cleveland-Cliffs (CLF), company CEO Lourenco Goncalves and United Industrial and Service Workers International Union president David McCall.

cleveland cliffs have Offer to buy U.S. Steel acquired the company in 2023 and exited after announcing a deal with Nippon Steel in December of that year. The Ohio-based company’s initial offer had the support of the United Steelworkers union and less opposition from Washington.

The second lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Cleveland-Cliffs and other companies “acted in a coordinated manner designed to block the transaction and attempt to undermine U.S. Steel’s ability to compete and Nippon Steel’s ability to provide U.S. steel to its customers.” The ability to make steel.” American consumers. ”

Investment Encyclopedia The lawsuits have not been independently reviewed.

U.S. Steel and Nippon Steel said they wanted an injunction to prevent the three parties from “further collusion and anti-competitive conduct and impose substantial monetary damages for their actions.”

Cleveland-Cliffs did not immediately respond to a request for comment.

USW International President David McCaul said in a statement: “By blocking Nippon Steel’s attempt to acquire U.S. Steel, the Biden administration protects vital U.S. interests, safeguards our national security and helps protect the infrastructure that supports U.S. Steel. Our country’s critical supply chain for the domestic steel industry.” Investment Encyclopedia. “We are reviewing the complaint and will vigorously defend against these baseless allegations.”

Shares of U.S. Steel rose more than 4% in intraday trading on Monday.