US Steel, Nippon Steel sue Biden admin over blocked acquisition

US Steel CEO David Burritt spoke with Fox Business' Lydia Hu about their lawsuit against the Biden administration over its decision to block the company's merger with Nippon Steel.

Nippon Steel and US Steel have filed a lawsuit challenging the Biden administration's order to block the nearly $15 billion deal for the Japanese company to acquire the American steelmaker.

The lawsuit, filed in the United States Court of Appeals for the District of Columbia Circuit, asks the court to vacate an order from the Committee on Foreign Investment in the United States and President Biden to block the sale.

The companies also filed a second lawsuit against rival Cleveland-Cliffs, its CEO Lourenco Goncalves and United Steelworkers (USW) President David McCall. He accuses them of having illegally coordinated to prevent the transaction and harm US Steel's competitive ability.

“From the beginning of the process, Nippon Steel and US Steel have engaged in good faith with all parties to emphasize how the transaction will strengthen, not threaten, United States national security, including revitalizing communities that rely on steel. “Nippon Steel is the only willing partner. and capable of carrying out the necessary investments.”

US STEEL CEO: GOVERNMENT FAILED OUR COUNTRY AFTER TERMINATION OF NIPPON STEEL AGREEMENT

President Biden blocked takeover of United States Steel Corp. by Nippon Steel Corps for several billion dollars. (Justin Merriman/Bloomberg via Getty Images / Getty Images)

Biden blocked the deal on Friday, citing national security concerns.

“A committee of national security and trade experts determined that this acquisition would create a risk to American national security,” White House spokeswoman Robyn Patterson said in a statement. “President Biden will never hesitate to protect this nation’s security, its infrastructure, and the resilience of its supply chains.”

Biden's reasoning, however, sparked reactions.

U.S. Steel CEO David Burritt warned that if Nippon Steel's acquisition of the company fails, the company would likely close steel mills in Pennsylvania's Monongahela Valley and Gary, Indiana, which were to benefit from a multi-billion dollar modernization thanks to the cash injected by Nippon following the completion of the sale.

Nippon Steel Corp. logos are displayed at the company's headquarters in Tokyo, Japan, March 18, 2019. (REUTERS/Yuka Obayashi/File Photo / Reuters Photos)

“We did everything right as a company with Nippon,” Burritt told Fox Business correspondent Lydia Hu in an interview Monday. “We did everything right. The government failed us. They failed because they didn't follow the process. And we're going to right that wrong. They failed our workers. They failed our communities. They have failed our country. They have failed our best ally in Asia. And they have emboldened China by failing to respect the rule of law.

DOES NIPPON STEEL’S OFFER TO BUY U.S. STEEL THREAT NATIONAL SECURITY? THE TRACK EXPERTS

USW President David McCall said the union was reviewing the companies' complaint and would “vigorously defend itself against these baseless allegations.”

“By blocking Nippon Steel's attempt to acquire US Steel, the Biden administration protected vital U.S. interests, safeguarded our national security, and helped preserve a domestic steel industry that underpins critical supply chains of our country.

US Steel and Nippon Steel announced they would file joint lawsuits against the US government and others following President Biden's decision to block the deal. FOX Business' Lydia Hu with more.

Nippon Steel had committed to investing $2.7 billion in US Steel's Mon Valley Works and Gary Works as part of a modernization project aimed at making the facilities more competitive with international competitors. Nippon also said it would preserve US Steel's name, brand and headquarters and refrain from any layoffs until 2026 if the deal goes through.

Before accepting Nippon's offer, US Steel declined Cleveland-Cliffs' $7 billion buyout offer in 2023.

A tugboat pushes a barge near the United States Steel Corp. facility. Clairton Coke Works in Clairton, Pennsylvania, September 9, 2024. (Justin Merriman/Bloomberg via Getty Images, File / Getty Images)

Nippon and US Steel said in a press release Monday that Biden used “undue influence to advance his political agenda.”

However, the companies also face the new Trump administration, which has also pledged to block the deal.

Trump questioned the proposed sale in an article on Truth Social on Monday.

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“Why would they want to sell US Steel now when the tariffs will make it a much more profitable and valuable company?” Trump wrote. “Wouldn't it be nice if US Steel, once the largest company in the world, once again led the charge to greatness? Anything can happen very quickly!”

Lydia Hu, Eric Revell and Yael Halon of Fox Business contributed to this report.

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