In a bold move, Japan's Nippon Steel and U.S. Steel have filed a lawsuit against the Biden administration after their proposed $14.9 billion merger was blocked on national security grounds. The companies argue that the decision undermines the rule of law and serves to advance President Biden's political agenda.
U.S. Steel, once a symbol of American industrial strength, has faced decline due to high labor costs, inadequate investments, and fierce global competition. Nippon Steel's generous bid, more than double Cleveland-Cliffs' $7 billion offer, aimed to revitalize the struggling American manufacturer.
Nippon Steel assured that U.S. Steel would remain American-led, retaining its name and Pittsburgh headquarters. The merger promised no layoffs, plant closures, or production cuts for the next decade, emphasizing a commitment to preserving American jobs and industry.
Despite bipartisan support from various industry leaders and analysts who see the merger as an opportunity to enhance efficiency and boost the U.S. manufacturing sector, President Biden cited national security risks and threats to critical supply chains as reasons for halting the deal. However, the administration has yet to provide substantial evidence supporting these claims.
Eiji Hashimoto, CEO of Nippon Steel, condemned the administration's actions as illegal political interference, asserting that the Committee on Foreign Investment in the United States (CFIUS) failed to conduct a fair and thorough review. The ongoing legal battle highlights the tensions between fostering international business collaborations and safeguarding national interests.
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'National security' best card to secure Biden's selfish gains
cgtn.com
