U.S. Steel, Nippon Claim Biden Violated Constitution in Lawsuit Over Blocked Deal.
U.S. President Joe Biden has been accused of breaching the Constitution by obstructing Nippon Steel's $14.9 billion acquisition bid for U.S. Steel, as stated in a lawsuit filed by the companies on Monday.
They contend that the obstruction occurred through a disingenuous national security review process. The plaintiffs are seeking a federal court ruling to overturn Biden's decision, allowing them to pursue a new national security review that is free from political interference.
The lawsuit claims that Biden influenced the Committee on Foreign Investment in the U.S. (CFIUS), which evaluates foreign investments for potential national security threats, thereby infringing upon the companies' right to an impartial review. The proposed merger had become a contentious issue in the lead-up to the November U.S. presidential election, with both President Biden and President-elect Donald Trump vowing to oppose it in an effort to attract voters in Pennsylvania, the home state of U.S. Steel.
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David McCall, President of the United Steelworkers (USW) union, also expressed opposition to the merger. Both Biden and Trump maintained that U.S. Steel should remain under American ownership, despite Nippon Steel's offer to relocate its U.S. headquarters to Pittsburgh and its commitment to uphold existing agreements with the USW. The companies allege that Biden's actions were motivated by a desire to gain favor with USW leadership in Pennsylvania as part of his reelection campaign.
They assert that due to Biden's inappropriate influence, the CFIUS did not carry out a genuine, national security-oriented regulatory review process, as indicated in their statement regarding the lawsuit. The White House has not yet provided a response to requests for comment. The proposed $14.9 billion merger between U.S. Steel and Nippon Steel has sparked significant legal and political debate. While the companies seek approval, arguing that it benefits both parties, political and national security concerns have led to obstacles. The outcome remains uncertain as legal challenges continue.
Related: U.S. Steel and Nippon Steel File Lawsuits Against Biden Administration Over Blocked Merger
