Nippon Steel, US Steel File Lawsuits After Biden Blocks Deal
US Steel shares rose 4% as of 7:25 a.m. in pre-market trading in New York.
Photographer: Justin Merriman/Bloomberg
Nippon Steel Corp. and United States Steel Corp. jointly filed lawsuits in a last-ditch effort to preserve the planned merger of the companies, which was blocked last week by President Joe Biden.
The companies said Monday in a joint statement that they filed a lawsuit in the US Court of Appeals for the District of Columbia Circuit challenging Biden’s decision and what they say is the failure of the Committee on Foreign Investment in the United States panel to consider the deal on national security grounds.
They also filed a suit in the US District Court for the Western District of Pennsylvania against rival US steelmaker Cleveland-Cliffs Inc., Cliffs’ CEO Lourenco Goncalves, and US Steelworkers union President David McCall.
“Both Nippon Steel and US Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, United States national security,” the companies said in the statement. “Today’s legal actions demonstrate Nippon Steel’s and US Steel’s continued commitment to completing the Transaction.”
US Steel shares rose 4% as of 7:25 a.m. in pre-market trading in New York.
