In a bold move, Japan's Nippon Steel is doubling down on its plans to acquire U.S. Steel, following U.S. President Joe Biden's decision to block the $14.1 billion deal. During a press conference on Tuesday, Nippon Steel CEO Eiji Hashimoto labeled Biden's decision as politically motivated and emphasized the company's unwavering commitment to the takeover.
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 accused President Biden of unlawfully intervening in the review process conducted by the Committee on Foreign Investment in the United States (CFIUS).
Nippon Steel has initiated lawsuits against the U.S. government, rival steel company Cleveland-Cliffs Inc., and key figures within the United Steelworkers labor union. The company argues that these parties colluded to block the acquisition, aiming to protect their own interests.
Despite the legal challenges, Nippon Steel and U.S. Steel remain steadfast in their pursuit of the merger, highlighting its strategic importance and mutual benefits for both Japan and the United States. \"There is no reason or need to give up. That is the agreed stance of Nippon Steel and U.S. Steel,\" Hashimoto asserted.
The controversy centers around national security concerns cited by President Biden as reasons to halt the acquisition. However, Nippon Steel contends that the deal is crucial for their management strategy and the future of U.S. Steel. The company is urging the courts to overturn Biden's order and mandate a new review by CFIUS.
As the legal battles continue, the global business community watches closely, recognizing the potential implications for international trade and steel industry dynamics.
Reference(s):
cgtn.com
