Nippon Steel and U.S. Steel have filed a federal lawsuit challenging the Biden administration's decision to block a proposed nearly $15 billion deal for Nippon to acquire Pittsburgh-based U.S. Steel. The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia, alleges that the decision was political and violated the companies' due process.
The companies stated that the transaction would enhance United States national security by revitalizing communities dependent on American steel, strengthening the domestic steel industry, and securing the steel supply chain against threats from China. Nippon Steel had pledged a $2.7 billion investment in U.S. Steel's blast furnace operations in Indiana and Pennsylvania, with a commitment not to reduce U.S. production capacity without government approval for the next decade.
