Nippon Steel: No Alternative To Blocked $14.1 Billion U.S. Steel Deal

Nippon Steel Corp. is standing firm on its $14.1 billion bid to acquire United States Steel Corp., with no backup plan in place despite the deal being blocked by U.S. President Joe Biden last week.

The two companies have filed a petition with the U.S. Court of Appeals for the District of Columbia Circuit, arguing that the CFIUS failed to adequately assess the deal’s implications for national security. I Photo: そらみみ Wikimedia Commons

Both companies have filed lawsuits to overturn the decision, Shoko Oda reported for Bloomberg News.

The Japanese steelmaker’s proposed acquisition was halted after a year of diplomatic tension, political debate, and lobbying from unions and rival companies. President Biden cited national security risks in his decision to block the deal, even though Japan is a close U.S. ally.

The two companies have filed a petition with the U.S. Court of Appeals for the District of Columbia Circuit, arguing that the Committee on Foreign Investment in the United States (CFIUS) failed to adequately assess the deal’s implications for national security.

They claim Biden's decision was driven by “purely political reasons.”

Additionally, Nippon Steel and U.S. Steel are suing Cleveland-Cliffs Inc. and United Steelworkers President David McCall, accusing them of engaging in anticompetitive practices.

“There is no reason—or need—to give up on this deal,” said Eiji Hashimoto, chairman and CEO of Nippon Steel, during a press conference in Tokyo. “I have no thoughts of alternative plans.”

The companies are asking the appeals court to nullify Biden’s executive order blocking the deal and to mandate a new review by CFIUS. In a joint statement, the companies described the current review as “unlawful” and reiterated their commitment to finalizing the acquisition.