XINHUA – Japan’s Nippon Steel Corp is set to file a lawsuit in response to United States (US) President Joe Biden’s decision to block its takeover of US Steel Corp, local media reported yesterday.
Nippon Steel and US Steel are expected to claim in court that Biden did not present sufficient evidence to prove the proposed acquisition poses a threat to US national security, and that his decision violates due process under the US Constitution and the law governing the Committee on Foreign Investment in the US, Kyodo News reported, citing sources close to the matter.
Biden said on Friday that he has decided to block the USD14.1 billion sale of US Steel to the Japanese steel giant, citing risks to national security, while urging the two steelmakers to “fully and permanently” abandon their plan.
In a joint statement on Friday, the two firms said the US authorities’ review of the international buyout project was “manipulated to advance President Biden’s political agenda” and that they will “take all appropriate action to protect our legal rights”.
Meanwhile, Japan’s Minister of Economy, Trade, and Industry Yoji Muto said, “It is incomprehensible and regrettable that this kind of decision has been made on the grounds of concerns over national security.”
The Japanese government regarded Nippon Steel’s plan to acquire US Steel as a deal “that would benefit both countries” as Japanese investment in the US has been on track to continue increasing, Muto said in a statement.
In late 2023, Nippon Steel announced plans to acquire US Steel, which is headquartered in Pennsylvania, one of the key swing states in the 2024 presidential election. Before Biden withdrew from the race, both he and his then-opponent, Donald Trump, had expressed opposition to the acquisition.
Nippon Steel is the world’s fourth-largest steelmaker by volume, while US Steel ranks 24th, according to a 2023 tally by the World Steel Association.
