The United States Steel Corporation filed two joint lawsuits with Nippon Steel after President Joe Biden blocked the Japanese corporation from acquiring the iconic American company.
The lawsuits target the Biden administration for blocking the acquisition as well as the United Steelworkers (USW) and the Ohio-based Cleveland-Cliffs, which U.S. Steel and Nippon Steel allege illegally coordinated to tank the acquisition.
U.S. Steel and Nippon Steel allege that Biden stopped the acquisition to win favor with the USW even as he is an outgoing president. As a result, the lawsuits claim, the Committee on Foreign Investment in the United States (CFIUS) did not conduct a proper review process.
The second lawsuit claims Cleveland-Cliffs and the USW illegally colluded to block the acquisition.
Like Biden, President-elect Donald Trump vowed to block the acquisition because he considers it a threat to national security.
As Breitbart News reported in 2023, U.S. Steel and Nippon Steel executives sought a nearly $15 billion deal that would have seen the iconic American steel giant — vital to the U.S. Armed Forces in World War II against Japan — sold off to the Japanese company.
Nippon Steel hired former Secretary of State Mike Pompeo to lobby Trump and the Biden administration to change their positions on the acquisition. The lobbying effort, though, failed.
U.S. Steel was founded in 1901 by Andrew Carnegie, J.P. Morgan, and Charles Schwab and served a critical role in the nation’s “Arsenal of Democracy” during WWII.
Among several American companies that helped the Allies defeat the Axis Powers, which included Imperial Japan, U.S. Steel made the U.S. the world’s largest steel producer during the war, with Pennsylvania becoming the nation’s steel capital.
John Binder is a reporter for Breitbart News. Email him at [email protected]. Follow him on Twitter here.
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