Today, U.S. Steel and Nippon Steel announced that they have filed two lawsuits after President Joe Biden blocked a $14.9 billion takeover last week.
The first case asserts that President Biden’s order to block the merger violates constitutional procedures and statutory rights. It claims that the order was motivated by purely political reasons, which are irrelevant and”to the detriment of United States national security.”
The second, accuses Cleveland-Cliffs CEO Lourenco Goncalves and USW President David McCall of engaging in anticompetitive and racketeering activities “illegally designed to prevent any party other than Cliffs from acquiring U.S. Steel as part of an illegal campaign to monopolize critical domestic steel markets.”
In a joint statement by Nippon and U.S Steel today, the companies said, “From the outset of the process, both Nippon Steel and U.S. Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, United States national security, including by revitalizing communities that rely on American steel, bolstering the American steel supply chain, and strengthening America’s domestic steel industry against the threat from China.”
“Today’s legal actions demonstrate Nippon Steel’s and U.S. Steel’s continued commitment to completing the Transaction – despite political interference… We remain confident that the Transaction is the best path forward to secure the future of U.S. Steel – and we will vigorously defend our rights to achieve this objective.”
Nippon Steel and U.S. Steel intend to “rightfully close the Transaction and deliver $55.00 per share for U.S. Steel’s stockholders.”
By CEO NA Editorial Staff
