Nippon Steel, whose multibillion-dollar proposal to buy struggling US Steel was blocked by President Joe Biden last week, says it is considering taking legal action against the US government.
On Friday, Biden said he was blocking the controversial $14.3 billion acquisition, marking a significant use of executive authority in the closing days of his administration. He cited the need to protect national security and supply chains.
“We are entitled to a proper review,” Imai told journalists outside his home. “The review process to date and the US government’s decision is not a very proper review. Our company cannot allow this to continue, so we are considering all options for future action.”
The deal has been politically charged since it was announced more than a year ago, stirring bipartisan political opposition to foreign control of a once key component of US industrial might.
The deal was not supported by the United Steelworkers (USW), the union representing American steel workers, which commended Biden’s decision as the “right move for our members and our national security.”
The USW said US Steel’s recent financial performance showed it could “easily remain a strong and resilient company,” USW International President David McCall said in a statement.
But some feared the failure of the deal could starve US Steel of the investment it says it needs, and may also scare away foreign investment in other US companies.
David Burritt, president and CEO of US Steel, called Biden’s decision “shameful and corrupt.”
In late December, the Committee for Foreign Investment in the United States, known colloquially as CFIUS, notified Biden that it had not reached a consensus on whether the US Steel sale to Nippon would pose a national security risk, leaving the decision up to the president.
US Steel and Nippon have argued throughout the process that the deal is necessary to provide needed investment in US Steel’s domestic steel operations. US Steel has claimed it could be forced to shut down the mills represented by the USW if it doesn’t get the $2.7 billion in investment planned by Nippon Steel as part of its proposed purchase.