Nippon Steel Challenges Biden's Antitrust Block
Deal News | Jan 06, 2025 | EIN
Nippon Steel and U.S. Steel have initiated lawsuits against the Biden administration’s decision to block their proposed $14.1 billion merger. The companies argue that the government's decision lacked constitutional due process and statutory requirements, accusing it of unlawful political influence. The lawsuits were filed in two courts: the U.S. Court of Appeals for the District of Columbia Circuit and the U.S. District Court for the Western District of Pennsylvania. The former targets the President's executive order, based on a CFIUS review examining potential national security risks. The latter accuses Cleveland-Cliffs and union leaders of illegal collusion to prevent fair competition. The merger was halted due to national security concerns, prompting the companies to seek redress for what they call undue governmental and anti-competitive interference.
Sectors
- Steel Industry
- Legal
- Government Regulation
Geography
- United States – The legal action is happening in U.S. courts, involving the U.S. government and American company U.S. Steel.
- Japan – Nippon Steel, a significant Japanese corporation, is one of the main entities in the proposed merger.
Industry
- Steel Industry – The article revolves around Nippon Steel and U.S. Steel, leaders in the global steel industry, attempting to merge.
- Legal – The article discusses the legal actions taken by Nippon Steel and U.S. Steel against the U.S. government.
- Government Regulation – Involvement of CFIUS and the U.S. government highlights regulatory oversight on mergers and acquisitions affecting national security.
Financials
- $14.1 billion – Proposed value of the merger between Nippon Steel and U.S. Steel.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nippon Steel | Bidding Company | Company | Japanese steel corporation involved in the proposed $14.1 billion merger with U.S. Steel. |
| U.S. Steel | Target Company | Company | American steel manufacturing corporation that is part of the proposed $14.1 billion merger. |
| U.S. Government | Government | Government | Blocked the merger citing national security concerns after a review by CFIUS. |
| Cleveland-Cliffs | Other Company | Company | Accused in the lawsuit of illegal coordination to block the merger. |
| Lourenco Goncalves | Other Company | People | CEO of Cleveland-Cliffs named in the lawsuit. |
| David McCall | Other Company | People | President of the Allied Industrial and Service Workers International Union mentioned in the lawsuit. |