Steel Giants Clash: Nippon Steel and US Steel Challenge Biden’s Block on Merger

Nippon Steel and US Steel are suing the Biden administration over its decision to block a $15 billion merger. The lawsuit, alleging political bias and due process violations, comes after federal regulators were deadlocked on the merger's security implications.

Nippon Steel and US Steel have initiated a federal lawsuit against the Biden administration after their proposed $15 billion merger was blocked. Filed in the US Court of Appeals for the District of Columbia, the suit alleges the decision had political motives and violated their due process rights.

Nippon Steel had committed to investing $2.7 billion into US Steel's operations in Indiana and Pennsylvania, promising not to reduce production capacity in the US without governmental approval over the next decade. Despite these assurances, President Biden halted the merger, citing national security concerns tied to maintaining domestic steel production.

This decision marks a historic first in US-Japan corporate relations, as never before has a US president blocked such a merger. The move follows recommendations from the Committee on Foreign Investment in the United States, which failed to reach consensus on the deal's security risks last month.

(With inputs from agencies.)