AP – Nippon Steel was standing firm on its proposed USD15 billion acquisition of United States (US) Steel, Chief Executive Eiji Hashimoto said yesterday after US President Joe Biden’s blocked the top Japanese steelmaker’s move.
“There is no reason or need to give up,” he told reporters at company headquarters in Tokyo. “We are convinced it’s clearly beneficial for both nations.”
While acknowledging the effort may take time, he stressed the companies’ latest legal action in the US was a key development.
Nippon Steel Corp and US Steel filed federal lawsuits on Monday challenging the Biden administration’s decision as ignoring “the rule of law”.
In separate lawsuits in the US Court of Appeals for the District of Columbia and the US District Court for the Western District of Pennsylvania, the steelmakers challenged the Biden administration’s move, noting the acquisition will “enhance, not threaten, US national security”.
In blocking the transaction last Friday, Biden said US companies producing steel need to “keep leading the fight on behalf of America’s national interests”.
Proponents of the takeover, which surfaced more than a year ago, said Japan is a US ally, as well as a top investor in American companies.
Hashimoto reiterated that Nippon Steel and US Steel were “united as one” in wanting the deal.
They both feel Biden’s decision is unlawful and invalid, and hope to win understanding for their effort, he told reporters.
The US market remains a key part of Nippon Steel’s global strategy, said Hashimoto.
US Steel Corp has accused the Biden administration of interference.
“We will vigorously defend our rights to complete this transaction and secure the future of US Steel,” the Pittsburgh-based manufacturer said in a recent statement.
Japanese Prime Minister Shigeru Ishiba also supports the deal, denying any security concerns.
Biden leaves the White House on January 20, but incoming US President Donald Trump also opposes the acquisition.
The Committee on Foreign Investment in the US reviewing the deal earlier did not reach a consensus on possible national security risks. Fitch Group’s CreditSights categorised the opposition to the deal as primarily political, while noting US Steel can remain “a standalone company”, benefiting from a recent rise in steel prices.
“In short, US Steel does not necessarily need to be sold,” it said in an analysis on Monday.
