Nippon Steel, U.S. Steel sue after Biden blocks

On Monday, Nippon Steel Corp. and U.S. Steel Corp. both announced they had filed lawsuits against the U.S. government after Joe Biden blocked the merger. On Friday, the US president, soon to be replaced by Donald Trump, rejected Nippon Steel’s $14.9 billion takeover of U.S. Steel, claiming there was credible evidence that the former “may take actions that threaten to harm the national security of the United States.” . State.” The order requires the company to take the necessary steps to “completely and permanently abandon” the deal within 30 days.

The battle between Nippon Steel and U.S. Steel continues

However, neither organization was willing to surrender without a fight. Nippon Steel Chief Executive Eiji Hashimoto told a news conference on Tuesday that Japan’s largest steelmaker would firmly support its proposal to acquire the U.S. company. “CFIUS’ review of the deal was not properly conducted due to President Biden’s unlawful interference. We can never accept that,” he said. Hashimoto added: “We will never give up on growing our U.S. business. There is neither reason nor necessity to do so. This is the best way for us.”

Later in the day, U.S. Steel CEO David Burritt called on Trump to reverse Biden’s decision. “The president can now step in and undo Biden’s wrong, shameful and corrupt conduct,” he said on CNBC. quack in the street. Burritt added: “What we want is for due process to play out. Obviously, our new president will revisit this issue. We understand his current view, but he one Smart people. He has the opportunity to do the right thing with a new perspective, and I have no doubt he will. “

Despite Burritt’s positive attitude, Trump has previously made clear that he intends to block the acquisition and, Based on his comments on Monday, there’s no reason to believe he’ll change his mind. “Why would they sell U.S. Steel now when tariffs will make it a more profitable and valuable company?” he wrote in The Truth Society.

Prime Minister Ishiba expresses concern over Biden’s order

Earlier in the day, Japanese Prime Minister Shigeru Ishiba expressed concern about Biden’s decision to block the merger. “Unfortunately, Japanese industry does have concerns about future Japanese-U.S. investment,” he told reporters. “It would be inappropriate for the Japanese government to comment on the management of individual companies that are under review under U.S. domestic law…but we strongly call on the U.S. government to take steps to address these concerns. They need to be able to clearly explain why there is a national security concern, otherwise Further discussions on this matter will not be possible,” he added.

Related posts