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Nippon Steel blasts Biden’s decision to prevent deal for US Steel

Nippon Steel Corporation and US Steel Corporation filed two lawsuits against President Biden and others on Monday, including a lawsuit seeking to invalidate the order to halt the acquisition plan. (Nippon Steel)
Nippon Steel Corporation and US Steel Corporation filed two lawsuits against President Biden and others on Monday, including a lawsuit seeking to invalidate the order to halt the acquisition plan. (Nippon Steel)
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07 Jan 2025 03:01:48 GMT9
07 Jan 2025 03:01:48 GMT9

Arab News Japan

TOKYO: Nippon Steel Corporation’s chairman has accused US President Joe Biden of “illegal political intervention” for blocking the acquisition of US Steel by the Japanese company.

Nippon Steel Corporation Chairman Eiji Hashimoto made a robust response to Biden’s decision. “The acquisition of US Steel will contribute to strengthening America’s national security,” he was quoted as saying by the Mainichi newspaper. “There is no reason or need to give up. President Biden’s illegal political intervention has prevented the review from being conducted properly, and it is completely unacceptable.”

Nippon Steel Corporation and US Steel Corporation filed two lawsuits against President Biden and others on Monday, including a lawsuit seeking to invalidate the order to halt the acquisition plan. The lawsuits cite illegal political intervention by Biden and the Committee on Foreign Investment in the United States (CFIUS), which was responsible for the review prior to the order. 

They also claim that United Steelworkers Chairman McCall and Cleveland-Cliffs CEO Goncalves of major American steelmaker Cleveland-Cliffs engaged in illegal activities to block the acquisition of US Steel. 

A White House spokesperson quoted by the Mainichi said: “The committee of experts has determined that this acquisition poses a risk to the national security of the United States.”

Japan’s Minister of Economy, Trade and Industry, MUTO Yoji said the lawsuit was a management decision of an individual company, according to a Kyodo News report, but added that the merger would “lead to strengthening the competitiveness of the steel industry in Japan and the US.” 

Nippon Steel Corporation published a scathing news release in response to Biden’s decision: “We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of US Steel, which reflects a clear violation of due process and the law governing CFIUS. Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda.”

“The President’s statement and Order do not present any credible evidence of a national security issue, making clear that this was a political decision. We believe that President Biden has sacrificed the future of American steelworkers for his own political agenda.”

“The CFIUS process was deeply corrupted by politics, and the outcome was pre-determined, without an investigation on the merits, but to satisfy the political objectives of the Biden White House. It is shocking  and deeply troubling  that the US government would reject a procompetitive transaction that advances US interests and treat an ally like Japan in this way.”

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