Nippon Steel and U.S. Steel are suing Biden for blocking their deal

Japanese company Nippon Steel together with U.S. U.S. Steel sued the current U.S . President Joe Biden and his administration because of the head of state's blocking of a deal in which a company from Japan was to buy a company from the United States. A joint press release posted on Nippon Steel's website on January 6 said.

"President Biden ignored the rule of law to gain favor with the International Union of Steel, Paper, Forestry, Rubber, Manufacturing, Energy, Allied and Service Workers (USW) to support his political agenda," the two companies said.

They clarified that there are two lawsuits. The first is filed with the U.S. Court of Appeals for the District of Columbia Circuit and challenges Biden's decision because it, according to Nippon Steel and U.S. Steel, constitutes political influence and violates constitutional guarantees. In this appeal, the companies ask the court to overturn the president's blocking order.

The second lawsuit is filed in the U.S. District Court for the Western District of Pennsylvania against Cleveland-Cliffs, its CEO Lorenzo Gonsalves and USW President McCall. They, according to Nippon Steel and U.S. Steel, coordinated illegal actions to undermine the competitiveness of the U.S. steel company and prevent the Japanese company from supplying U.S. consumers in the United States with U.S. steel.

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Biden blocked Nippon Steel'spurchase of U.S. Steel on Jan. 3. He said his sacred duty as U.S. president is to ensure the future strength of the U.S. steel industry, and banning the deal protects the country's national security. On the same day, U.S. Steel chief David Burritt called the lockout "shameful" and "corrupt."

Before that, on Dec. 31, Japan's Nippon Steel made a new offer to Biden to buy U.S. Steel. Discussion of the deal in the White House was active at the time, and the incumbent U.S. president feared that the purchase, in addition to threatening national security, would badly affect conditions for workers.

In addition, U.S. President-elect Donald Trump in turn said on December 2 that after his inauguration he intended to block the deal to sell U.S. Steel to Japan's Nippon Steel. In addition, the Republican assured that he would return the American company its lost positions.

Nippon Steel announced its intention to acquire U.S. Steel last December and planned to finalize the deal in the second or third quarter of 2024. The owners of Nippon Steel also expressed their willingness to pay the debts of the U.S. company amounting to about $742 million, as well as to retain the brand and production facilities in the U.S..