U.S. Steel and Nippon Steel have initiated a lawsuit against President Joe Biden following his order to block their proposed $14.9 billion acquisition of U.S. Steel, citing violations of constitutional due process and procedural requirements. The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, aims to contest both the review process by the Committee on Foreign Investment in the U.S. (CFIUS) and Biden’s decision, which was influenced by national security concerns regarding the American steel industry. This legal action also includes a separate suit against Cleveland-Cliffs and its executives for allegedly illegal actions to thwart the deal. The acquisition, initially approved by U.S. Steel shareholders in April 2022, faced mounting political and union resistance, highlighted by Biden’s concerns that it could jeopardize thousands of U.S. jobs and the steel sector’s stability. Despite Nippon Steel’s earlier commitments, including relocating its headquarters to Pittsburgh and honoring existing union agreements, the deal’s future remains uncertain, contributing to stock volatility and diminished investor confidence in U.S. Steel amid declining profits and revenue.
