U.S. Steel and the Japanese company that was trying to acquire the company are filing a lawsuit against the Biden administration after the president announced he would block a proposed deal with the iconic American manufacturer.
U.S. Steel and Nippon Steel said in a release Monday that President Joe Biden had the support of the United Steelworkers, the union that represents many of U.S. Steel’s employees, when he announced Friday that he would not approve the acquisition. “There was a disregard for the rule of law,” he said. Through.
Separately, U.S. Steel and Nippon Steel also accused union president David McCall and the head of rival Ohio-based mining company Cleveland-Cliffs of illegally coordinating to undermine the deal. Then he announced.
Nippon Steel had proposed a $14 billion deal to acquire U.S. Steel, but the deal, which was supported by U.S. Steel executives, is pending a national security review by a Treasury committee evaluating foreign-funded proposals. I got stuck in a quagmire.
In the end, the committee could not agree on whether Japan’s ownership posed a security risk and asked Biden to make the final decision. In announcing his veto of the deal, Biden said moving the company out of U.S. hands would undermine critical supply chains and put jobs at risk.
The lawsuit also names the Treasury Board, Treasury Secretary Janet Yellen and Attorney General Merrick Garland.
“A panel of national security and trade experts has determined that this acquisition poses a risk to the national security of the United States,” a Biden administration spokesperson said in an emailed statement. “We will never hesitate to protect this country, our infrastructure, and our national security.” Supply chain resilience. ”
Steelworkers Union President McCall said in a statement that the company is considering a lawsuit.
“By blocking Nippon Steel’s attempted takeover of U.S. Steel, the Biden administration protected America’s vital interests, protected national security, and helped preserve the domestic steel industry that supports our nation’s critical supply chain.” he said.
Lourenco Goncalves, president, chairman and CEO of the Cleveland Cliffs, accused U.S. Steel and Nippon Steel of trying to “play the blame game.”
“Today’s lawsuit against the U.S. government, USW, and Cleveland-Cliffs represents a shameless effort by U.S. Steel and Nippon Steel to scapegoat others for a disaster of their own making,” Gonsalves said in a statement. It represents,” he said.
“The Cleveland-Cliffs and USW were not alone in recognizing the negative national security implications of this acquisition. That includes President Trump, who has sworn in,” Gonsalves added.
After the lawsuit was announced on Monday, President-elect Donald Trump, who had voiced opposition to the deal during his campaign last year, posted on his platform Truth Social: It will be a much more profitable and valuable company. Isn’t it great that US Steel, once the world’s largest company, is once again leading the way to greatness? It could all happen quickly! ”