Japan’s Nippon Steel isn’t backing down after U.S. President Joe Biden blocked its $14.1 billion acquisition of United States Steel, citing national security concerns.
Nippon Steel’s CEO Eiji Hashimoto declared that the company will continue to pursue the takeover, calling Biden’s decision “politically motivated” and alleging that the review by the Committee on Foreign Investment in the United States (CFIUS) was improperly handled due to presidential interference.
“We firmly believe that the facts will show that this decision violated the constitution and laws,” Hashimoto stated at a press conference. “We are not going to give up. This deal is not only crucial for our strategy but also beneficial to both Japan and the U.S.”
In response to the block, Nippon Steel has filed lawsuits against the U.S. government, rival steelmaker Cleveland-Cliffs Inc., its CEO Lourenco Goncalves, and United Steelworkers union leader David McCall. The Japanese firm alleges that Cleveland-Cliffs and the union colluded to prevent any acquisition of U.S. Steel by parties other than Cleveland-Cliffs.
Nippon Steel and U.S. Steel are seeking to overturn Biden’s order and have CFIUS conduct a new, unbiased review of the proposed deal. “We remain confident that the transaction is the best path forward to secure the future of U.S. Steel,” the companies said in a joint statement.
President Biden’s order, issued last Friday, requires the companies to abandon the transaction within 30 days unless extended by CFIUS. The administration has cited risks to national security as the reason for blocking the sale.
The unfolding legal battle highlights the complexities of international business deals amid growing concerns over national security and economic competition.
Reference(s):
cgtn.com
