Nippon Steel was standing firm on its proposed $15 billion acquisition of U.S. Steel, Chief Executive Eiji Hashimoto said yesterday after President Joe Biden’s blocked the top Japanese steelmaker’s move.
“There is no reason or need to give up,” he told reporters at company headquarters in Tokyo. “We are convinced it’s clearly beneficial for both nations.”
While acknowledging the effort may take time, he stressed the companies’ latest legal action in the U.S. was a key development.
Nippon Steel Corp. and U.S. Steel filed federal lawsuits Monday challenging the Biden administration’s decision as ignoring “the rule of law.”
In separate lawsuits in the U.S. Court of Appeals for the District of Columbia and the U.S. District Court for the Western District of Pennsylvania, the steelmakers challenged the Biden administration’s move, noting the acquisition will “enhance, not threaten, United States national security.”
In blocking the transaction Friday, Biden said U.S. companies producing steel need to “keep leading the fight on behalf of America’s national interests.”
Proponents of the takeover, which surfaced more than a year ago, say Japan is a U.S. ally, as well as a top investor in American companies.
They also argue Nippon Steel and U.S. Steel coming together makes for a viable force in an industry now dominated by the Chinese, creating jobs and economic impact of up to $1 billion.
Hashimoto reiterated that Nippon Steel and U.S. Steel were “united as one” in wanting the deal. They both feel Biden’s decision is unlawful and invalid, and hope to win understanding for their effort, he told reporters.
The U.S. market remains a key part of Nippon Steel’s global strategy, said Hashimoto.
U.S. Steel Corp. has accused the Biden administration of interference. YURI KAGEYAMA, TOKYO, MDT/AP
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