Japanese steel giant Nippon Steel has declared it will not abandon its bid to acquire United States Steel, despite U.S. President Joe Biden’s recent order blocking the $14.1 billion deal. Nippon Steel CEO Eiji Hashimoto described the President’s decision as politically motivated and emphasized the company’s commitment to pursuing the takeover.
At a press conference on Tuesday, Hashimoto stated, “We firmly believe that the various facts that will come to light through the litigation will demonstrate that this decision clearly violated the constitution and laws.” He added, “A review of the deal by the Committee on Foreign Investment in the United States (CFIUS) was not properly conducted due to President Biden’s illegal intervention. We can never accept this.”
Nippon Steel has taken legal action against the U.S. government, Cleveland-Cliffs Inc., its CEO Lourenco Goncalves, and United Steelworkers union leader David McCall. The Japanese company alleges that these parties colluded to prevent any entity other than Cleveland-Cliffs from acquiring U.S. Steel, engaging in what it terms “racketeering and monopolistic conspiracies.”
The two steelmakers, Nippon Steel and U.S. Steel, are jointly seeking to have Biden’s order nullified and are requesting a new review of the deal by CFIUS. Biden’s order demands that the companies abandon the transaction within 30 days, unless extended by CFIUS, citing national security concerns.
“We remain confident that the transaction is the best path forward to secure the future of U.S. Steel, and we will vigorously defend our rights to achieve this objective,” the two companies said in a joint statement.
Hashimoto stressed the significance of the acquisition for both Japan and the United States. “The buyout project is not only the most important issue for our management strategy but also extremely beneficial to Japan and the U.S. We are not going to give up. There is no reason or need to give up. That is the agreed stance of Nippon Steel and U.S. Steel,” he affirmed.
Nippon Steel’s determination sets the stage for a legal battle that could have significant implications for international business dealings and the global steel industry. The company’s actions highlight the complexities of foreign investments in critical industries and the intersection of business strategies with national security considerations.
Reference(s):
cgtn.com
