U.S. Steel and Nippon Steel sue Biden administration for blocking merger

Steelmakers U.S. Steel and Nippon Steel reported that they filed at least two lawsuits in court against Joe Biden's administration for vetoing their proposed merger. The announcement was made through a joint statement.

The two groups filed an appeal with an appeals court, in which they assert that Biden allegedly used his influence improperly for political purposes.

"From the outset of the process, both Nippon Steel and U. S. Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, United States national security, including by revitalizing communities that rely on American steel, bolstering the American steel supply chain, and strengthening America’s domestic steel industry against the threat from China," the companies said in the statement.

They further detailed that "Nippon Steel is the only partner both willing and able to make the necessary investments – including no less than $1 billion to Mon Valley Works and approximately $300 million to Gary Works as part of the $2.7 billion committed – to protect and grow U. S. Steel for the benefit of employees, the communities in which it operates, and the entire American steel industry."

President Joe Biden on Friday announced his decision to block Japan's Nippon Steel from acquiring the large U.S. Steel company, a deal that had been valued at $15 billion. In a statement he noted:

“I am taking action to block this deal. It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company. U.S. Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world.”

The decision was based on national security risk reasons, and puts an end to the possibility of one of the nation's largest steel companies passing into foreign hands. Biden is not alone in expressing opposition to the sale. Political leaders from both parties, including President-elect Donald Trump, had already noted the importance of keeping U.S. Steel under U.S. control.