Lawsuit Filed Against Biden Admin for Blocking Steel Sale [WATCH]

Nippon Steel and U.S. Steel have filed lawsuits challenging the Biden-Harris administration’s decision to block a nearly $15 billion acquisition deal that would have allowed the Japanese company to purchase the American steelmaker.

The legal action, filed Monday, contests the administration’s order and accuses competitors of illegal interference.

The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, asks the court to overturn the decision made by the Committee on Foreign Investment in the United States (CFIUS) and Joe Biden to block the deal.

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The administration cited national security concerns as the rationale for halting the transaction.

In a joint statement, Nippon Steel and U.S. Steel argued that the acquisition would bolster, rather than harm, U.S. national security.

“From the outset of the process, both Nippon Steel and U.S. Steel have engaged in good faith with all parties to underscore how the transaction will enhance, not threaten, United States national security, including by revitalizing communities that rely on American steel, bolstering the American steel supply chain, and strengthening America’s domestic steel industry against the threat from China,” the companies said.

The statement also emphasized Nippon Steel’s commitment to investing in U.S. Steel facilities, calling the company “the only partner both willing and able to make the necessary investments.”

In addition to the lawsuit against the administration, Nippon Steel and U.S. Steel have filed a second lawsuit targeting Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall.

The companies accuse them of illegally coordinating to block the transaction and undermine U.S. Steel’s ability to compete in the market.

U.S. Steel CEO David Burritt criticized the government’s decision, warning of potential consequences if the Nippon deal does not proceed.

“If the firm’s acquisition by Nippon Steel falls through, we will likely close steel mills in Pennsylvania’s Monongahela Valley and Gary, Indiana,” Burritt said in an interview with Fox Business.

The proposed acquisition included a $2.7 billion investment by Nippon Steel to modernize U.S. Steel’s Mon Valley Works and Gary Works facilities, aiming to make them more competitive globally.

“We did everything right as a company with Nippon,” Burritt said. “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 failed our country. They failed our best ally in Asia. And they’ve emboldened China by not following the rule of law.”

Biden Admin Faces Lawsuit from Steelmakers for Blocking Sale of U.S. Steel…

Nippon Steel and U.S. Steel have filed lawsuits challenging the Biden-Harris administration’s decision to block a nearly $15 billion acquisition deal that would have allowed the Japanese company to… pic.twitter.com/DvCOS7cH6q

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The blocked deal has reignited debates about foreign investments in critical industries.

Nippon Steel had committed to preserving U.S. Steel’s name, brand, and headquarters while refraining from layoffs through 2026.

The Japanese company’s offer followed U.S. Steel’s rejection of a $7 billion buyout bid from Cleveland-Cliffs in 2023.

Despite the lawsuits, Nippon and U.S. Steel face resistance from the incoming Trump administration, which has also vowed to block the deal.

In a press release Monday, the companies accused Biden of using “undue influence to advance his political agenda,” suggesting that political motivations rather than legitimate concerns drove the decision.

The legal challenges are expected to test the boundaries of U.S. policy on foreign investment in critical industries, with implications for the steel sector and broader national security considerations.

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