Biden accused of blocking $14.9 billion merger between U.S. Steel and Nippon Steel.

From Investing.com: 2025-01-06 08:41:27

U.S. President Joe Biden is being accused by Nippon Steel of blocking a $14.9 billion bid for U.S. Steel through a sham national security review, prompting a lawsuit. The companies seek a fresh review unaffected by political influence, claiming Biden’s decision violated their rights and was politically motivated.

The proposed merger between Nippon Steel and U.S. Steel became a political issue ahead of the U.S. presidential election, with both Biden and Trump vowing to prevent it in a bid to win over voters in Pennsylvania. The United Steelworkers (USW) union also opposed the deal.

Biden’s alleged interference in the deal was seen as an attempt to gain favor with the USW leadership in Pennsylvania for his reelection bid, according to the companies. They claim the national security review process was not conducted in good faith due to Biden’s influence.

The companies have filed a lawsuit against Biden, Attorney General Merrick Garland, and Treasury Secretary Janet Yellen, along with a separate lawsuit against Cleveland-Cliffs and others involved in preventing the deal. The prospects for the lawsuit remain uncertain, as courts typically defer to CFIUS on national security matters.

U.S. Steel, a historic American company founded in 1901, has faced financial challenges in recent years, making it an attractive acquisition target for competitors. Biden’s decision to block the proposed purchase on national security grounds has dealt a significant blow to the contentious plan.



Read more at Investing.com: U.S. Steel, Nippon allege Biden violated constitution in lawsuit over blocked deal By Reuters