The Wall Street Journal recently published an opinion piece by Takahiro Mori, vice chairman of Nippon Steel, reaffirming the company’s commitment to acquiring U.S. Steel despite the Biden administration’s recent blockage of the $14.9 billion deal. Nippon Steel and U.S. Steel have filed lawsuits challenging the decision, arguing a violation of due process.
Following President Biden’s order to unwind the transaction within 30 days, both companies initiated legal action. Enforcement of the order has been temporarily suspended until June pending the outcome of the lawsuits. Mori expressed confidence in their legal standing, stating in the WSJ, “Nippon Steel and U.S. Steel will do whatever it takes to close this transaction…We believe our case is strong, and we look forward to our day in court.”
This development follows a previous rejected bid from Cleveland-Cliffs, who, along with Nucor, are reportedly preparing a new all-cash offer for U.S. Steel. This intensifies the competition for acquiring the American steelmaker and adds another layer of complexity to Nippon Steel’s pursuit.
Despite the setback, Mori emphasized Nippon Steel’s continued interest in collaborating with the U.S. government to strengthen U.S. Steel. “We remain interested in exploring possible partnerships with the new administration to invest in and grow U.S. Steel to benefit American workers, customers, and national security,” he wrote.
The decision to pursue legal action underscores the significance of the deal for Nippon Steel. Mori reiterated Japan’s strong alliance with the U.S. and dismissed national security concerns surrounding the acquisition. He expressed concern about the potential chilling effect on foreign investment in the U.S., stating, “Major companies in allied nations want to invest in the U.S. and employ Americans. Now they wonder if they’ll be treated as partners or political pawns.” This statement highlights the broader implications of the Biden administration’s decision and its potential impact on international business relations. The legal battle and the potential counter-offers create significant uncertainty surrounding the future of U.S. Steel.
