U.S. Steel and Nippon Steel Sue U.S. President
World
U.S. Steel and Nippon Steel have filed a lawsuit against U.S. President Joe Biden for blocking a $14.1 billion deal. The agreement would have allowed Nippon Steel to acquire U.S. Steel, but Biden blocked it, citing national security concerns.
In January 2025, Biden decided to halt the process of Nippon Steel purchasing U.S. Steel. According to the president, the deal could place one of the largest U.S. steel producers under foreign control, posing risks to national security and critical supply chains.
Following Biden’s decision, the two companies filed a lawsuit in federal court. They accused Biden and his administration of politically motivated interference in the deal’s review process and harming the American steel industry. The companies also requested that the Committee on Foreign Investment in the United States (CFIUS) reconsider the deal.
Additionally, U.S. Steel and Nippon Steel filed a separate lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers union president David McCall. The lawsuit alleges that they conspired to disrupt the deal.
The blockage of the deal caused U.S. Steel’s stock to drop by 6.5% on the New York Stock Exchange. While shares slightly recovered, the deal's fate remains uncertain.
This deal was expected to allow Nippon Steel to increase its annual steel production to 100 million tons and significantly expand its operations in the U.S. However, Biden emphasized that U.S. Steel must remain an American company. Donald Trump had previously expressed a similar position.
Following Biden’s decision, the two companies filed a lawsuit in federal court. They accused Biden and his administration of politically motivated interference in the deal’s review process and harming the American steel industry. The companies also requested that the Committee on Foreign Investment in the United States (CFIUS) reconsider the deal.
Additionally, U.S. Steel and Nippon Steel filed a separate lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers union president David McCall. The lawsuit alleges that they conspired to disrupt the deal.
The blockage of the deal caused U.S. Steel’s stock to drop by 6.5% on the New York Stock Exchange. While shares slightly recovered, the deal's fate remains uncertain.
This deal was expected to allow Nippon Steel to increase its annual steel production to 100 million tons and significantly expand its operations in the U.S. However, Biden emphasized that U.S. Steel must remain an American company. Donald Trump had previously expressed a similar position.
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