This story was first posted by Kyodo News. Their sources, who are close to the matter, said Saturday that they are likely to sue.
On Friday, President Biden explained his decision, urging both Japanese and U.S. steelmakers to “fully and permanently” abandon the acquisition. This decision marks the first time a Japanese company’s merger and acquisition deal has been halted by an American president.
In previous talks, Biden has said, “We need major U.S. companies representing the major share of U.S. steelmaking capacity to keep leading the fight on behalf of America’s national interests.”
The deal, initially announced in 2023, has been backed by U.S. Steel shareholders.
However, it faced opposition from the United Steelworkers Union, with their International President David McCall calling Biden’s decision “the right move for our members and our national security.”
Legal Battle Looms
Nippon Steel and United States Steel are expected to challenge Biden’s decision in court, arguing that the administration failed to provide sufficient evidence to prove the acquisition posed a threat to national security. They also contend that the move violates due process rights under the U.S. Constitution and the law governing the Committee on Foreign Investment in the United States (CFIUS).
Even though Biden will leave office on January 2025, President-elect Donald Trump has also publicly opposed the deal.
We’ll follow this story and give you updates as the story unfolds.
