WASHINGTON: US Steel and Nippon Steel sued the Biden administration after their $14.3 billion merger was blocked last week.
The companies accused Biden of political interference, claiming his executive order violated due process.
In a statement, the companies emphasized their commitment to completing the merger despite government opposition.
They argued Biden’s decision served political purposes, allegedly favoring the United Steelworkers (USW) union.
Legal Battle Targets Administration and Rivals
The companies claimed Biden ignored the rule of law to align with USW and advance his political agenda.
They filed a separate lawsuit against Cleveland-Cliffs CEO Lourenco Goncalves and USW President Dave McCall.
This second suit accuses them of anti-competitive and racketeering activities designed to prevent the merger’s completion.
US Steel and Nippon seek monetary damages and legal actions against what they call monopolistic conduct.
Claims of Domestic Market Monopolization
The companies allege Cleveland-Cliffs and the union conspired to monopolize critical domestic steel markets.
They argue these coordinated efforts unfairly blocked any bidders other than Cleveland-Cliffs from acquiring US Steel.
US Steel and Nippon accuse Cliffs and USW of creating an environment hostile to competition in the steel industry.
These actions, the companies claim, harm both free market principles and consumer interests in the steel sector.
Lawsuit Highlights Political and Economic Stakes
Biden’s months-long opposition to the merger had already signaled his stance against its approval.
US Steel and Nippon say Biden prioritized political allies over the economic merits of the merger.
The legal dispute underscores significant tensions between corporate interests, labor unions, and government regulations.
The outcome could shape future policies regarding major mergers in critical U.S. industries like steel production.
Broader Implications for Industry Competition
These lawsuits highlight growing friction between the administration’s policy goals and corporate merger strategies.
As legal proceedings unfold, the battle will likely influence debates over antitrust enforcement and market consolidation.
For US Steel and Nippon, the stakes go beyond a single merger, challenging government decisions perceived as overreach.
The lawsuits signal their determination to protect shareholder interests amid accusations of politically motivated interference.