U.S. Steel Files Lawsuits over Proposed Acquisition Block
Deal News | Jan 07, 2025 | EIN
U.S. Steel and Nippon Steel Corporation are embroiled in legal battles following alleged political and competitive interference in their proposed acquisition agreement. The companies have filed two lawsuits asserting wrongful interference, citing both U.S. President Biden's biased actions and anti-competitive tactics by Cleveland-Cliffs. The first lawsuit targets the constitutional and procedural violations in the foreign investment review process, claiming undue political influence. The second lawsuit accuses Cleveland-Cliffs and labor union USW of colluding to block the transaction in an attempt to monopolize the steel industry. U.S. Steel and Nippon Steel seek legal recourse to proceed with the acquisition and ensure financial commitments are honored.
Sectors
- Steel Industry
- Legal Services
- Political and Government Affairs
Geography
- United States – The main activities and legal proceedings relevant to the acquisition are taking place in the United States.
- Japan – Nippon Steel, a Japanese company, is a central player in the acquisition process.
Industry
- Steel Industry – The industry focus is primarily on the production and supply of steel, involving key players U.S. Steel and Nippon Steel.
- Legal Services – Involvement of significant legal actions and lawsuits in the acquisition process.
- Political and Government Affairs – The article discusses political influence and government regulatory processes affecting corporate transactions.
Financials
- 55.00 – Per share price that U.S. Steel's shareholders would receive upon closure of the transaction.
- 2.7 billion – Total investment committed by Nippon Steel for U.S. Steel growth.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| United States Steel Corporation | Target Company | Companies | An American integrated steel producer, pivotal in the acquisition dispute. |
| Nippon Steel Corporation | Bidding Company | Companies | A leading Japanese steel producer, seeking to acquire U.S. Steel. |
| Cleveland-Cliffs Inc. | Other/Competitor | Companies | Accused of conducting anti-competitive actions to block the acquisition. |
| Lourenco Goncalves | CEO, Cleveland-Cliffs | People | CEO of Cleveland-Cliffs, mentioned in the suit for allegedly interfering with the acquisition. |
| David McCall | President, United Steelworkers | People | President of USW, involved in the lawsuit for allegedly colluding against the acquisition. |
| Committee on Foreign Investment in the United States (CFIUS) | Government/Regulatory Body | Government | Performed the initial regulatory review for the acquisition. |
| President Joe Biden | Government Official | People | U.S. President accused of undue political influence in the acquisition process. |