The takeover has been in limbo since it was first announced in December 2023.
In one lawsuit, Nippon Steel and US Steel asked the court to overturn the review process by the Committee on Foreign Investment in the United States, which has the authority to review foreign takeovers of American firms, saying it “failed to conduct a good-faith, regulatory review focused on national security.”
In addition, the companies also sued United Steelworkers union president David McCall and rival steel firm Cleveland-Cliffs CEO Lourenco Gonçalves for “their illegal and concerted actions to prevent the deal.”
On Friday, the United Steelworkers union said it had “no doubt” that blocking the takeover was “the right move for our members and our national security.”
The union accused Nippon of undermining the US steel industry for decades with measures including dumping its products on the US market.
Nippon Steel and US Steel said they “engaged in good faith with all parties” to show how the deal would “enhance, not threaten, the national security of the United States” and how it would strengthen America’s domestic steel industry “against the threat from China.” .
They also confirmed that Nippon is ready to invest $2.7 billion in Pittsburgh-based US Steel.
President-elect Donald Trump has also said he would block the deal. On Monday, he wrote on Truth Social: “Why would they want to sell US Steel now when the tariffs would make it a much more profitable and valuable company?”
Earlier on Monday, Japanese Prime Minister Shigeru Ishiba expressed concern over the US decision to block the takeover and its impact on trade relations between the two G7 nations.
“Unfortunately, it is true that we have heard concerns from Japanese industry about future investment between Japan and the US. We must take this issue as a serious matter,” Mr. Ishiba said.
He added that while it was inappropriate for his government to comment on individual companies, “We must insist on an explanation of why there are security concerns or there will be no progress in future discussions.”
