Japan's Nippon to sue US over blocking deal to buy steel firm

By Anadolu staff

Japan’s Nippon Steel has decided to challenge in court the US government’s decision to block the $14.1 billion takeover of US Steel, Kyodo News reported on Saturday.

The news came after President Joe Biden Friday blocked the deal, citing "critical" national security concerns and the need to maintain "resilient supply chains."

On Friday, Nippon and US Steel blasted the move, calling it "unlawful" to block the proposed acquisition of US Steel, adding that they will take all appropriate action to protect their legal rights.

"We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of U.S. Steel, which reflects a clear violation of due process and the law governing CFIUS (Committee on Foreign Investment in the United States)," said the companies in a joint statement. “Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda.”

Biden is set to leave office on Jan. 20, as his successor Donald Trump will be sworn in for a new term.

Biden's decision came after the CFIUS failed in mid-December to reach consensus on whether the proposed sale poses a national security risk, giving Biden 15 days to act.

President-elect Trump has also voiced opposition to the sale.

*Writing by Islamuddin Sajid