Nippon Steel considers quick legal action against US government
- The planned $14.9 billion acquisition of U.S. Steel by Nippon Steel has been blocked by President Biden due to national security concerns.
- U.S. Steel's shareholders had previously approved the acquisition, warning of potential job cuts if the deal was obstructed.
- Nippon Steel's president, Imai, is considering legal action against the U.S. government as one of the options following the blocked deal.
In recent weeks, Nippon Steel's planned acquisition of U.S. Steel, valued at $14.9 billion, has faced significant hurdles. The deal, initially announced in 2023, received serious backlash, particularly from communities in the Rust Belt where U.S. Steel has been a longstanding presence since its founding in 1901. On January 4, 2025, President Joe Biden intervened to block the acquisition, citing concerns of national security, particularly regarding the potential decline in domestic steel production amid rising dominance from Chinese steel producers. This decision came less than three weeks before Biden’s presidency was to conclude, which further escalated the urgency of the situation. Upon shareholder approval of the deal in April 2024, U.S. Steel had warned about potential downsizing and job cuts if the acquisition were halted. Biden's administration, responding to worries presented by the Committee on Foreign Investment in the United States, found credible evidence that the acquisition could threaten national security. They feared a decrease in domestic steel production could lead to vulnerabilities. In light of this decision, Imai has suggested that legal action against the U.S. government is a feasible consideration, indicating that such a move would not take long to initiate. A Nippon Steel spokesperson has confirmed plans for a press conference on this matter but details are pending.