Steel Giants Clash: Biden Blocks $15B Nippon-US Merger

Nippon Steel and US Steel have filed a lawsuit against the Biden administration for blocking their $15 billion merger deal. The administration cited national security concerns, asserting the importance of a domestically operated steel industry. The lawsuit claims political interference and challenges rival Cleveland-Cliffs of anticompetitive actions.

Nippon Steel and US Steel have taken legal action against the Biden administration's recent decision to block their proposed $15 billion merger. The lawsuit, filed in the US Court of Appeals for the District of Columbia, claims political bias influenced the decision, infringing on the companies' due process rights.

Both steel giants had engaged with various parties to demonstrate how the merger could bolster US national security by revitalizing steel-dependent communities and fortifying the domestic steel supply chain against external threats such as China. Nippon Steel had pledged significant investments in aged US Steel facilities, emphasizing no reduction in US production for the next decade without governmental approval.

President Biden's decision comes after federal regulators could not reach consensus on the merger's potential national security impact, highlighting the necessity of a robust, domestically owned steel industry for national security. Concurrently, a lawsuit in Pennsylvania accuses Cleveland-Cliffs and its CEO of obstructing the deal through anticompetitive means.

(With inputs from agencies.)