Nippon Steel, US Steel file lawsuit against Biden’s order

Nippon Steel Chairman and CEO Eiji Hashimoto speaks during a press conference at the company’s head office in Tokyo on January 7, 2025. (Photo by Kazuhiro NOGI / AFP)

Tokyo — Nippon Steel Corp. and United States Steel Corp. said Monday that they have jointly filed a lawsuit in the United States against outgoing U.S. President Joe Biden’s order to block the Japanese company’s acquisition of its U.S. peer.

The unusual lawsuit challenges “unlawful political influence” and seeks to invalidate the presidential order and the review of the deal by the Committee on Foreign Investment in the United States.

In a statement released Monday, Nippon Steel and U.S. Steel argued that Biden “ignored the rule of law to gain favor” with the United Steelworkers, or USW, union and “support his political agenda.”

Pointing to the president’s “undue influence to advance his political agenda,” the companies also claimed that the committee “failed to conduct a good faith, national security-focused regulatory review process.”

They have also sued rival U.S. steelmaker Cleveland-Cliffs Inc., its chief executive, Lourenco Goncalves, and USW President David McCall for their alleged “illegal and coordinated actions aimed at preventing” the acquisition.

“These legal actions are the necessary path toward closing the transaction and delivering shared success for U.S. Steel employees, communities, shareholders, and customers,” they noted.

In his order dated Friday, Biden demanded “all steps necessary to fully and permanently abandon” the acquisition within 30 days of the order, citing the need to protect his country’s national security.

Through the lawsuits, Nippon Steel is expected to emphasize that its acquisition of U.S. Steel will strengthen the U.S. economy and national interest. However, the situation is extremely difficult for the Japanese company, as incoming President Donald Trump has also clarified his position against the deal.

“Why would they want to sell U.S. Steel now when Tariffs will make it a much more profitable and valuable company,” Trump said in a social media post on Monday. “Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again? It can all happen very quickly!”

Nippon Steel may be required to pay U.S. Steel $565 million as a penalty if its acquisition bid falls through.