President Biden cited national security as his motivation.
Nippon Steel and U.S. Steel have filed federal lawsuits challenging President Biden’s decision to block Nippon’s $15 billion acquisition of U.S. Steel. Nippon Steel had pledged a $2.7 billion investment in U.S. Steel’s aging facilities to help the U.S. compete against China in the global steel market.
The president cited the importance of maintaining a strong domestic steel industry for national security. This is the first time a U.S. president has blocked a merger between American and Japanese firms.
The lawsuits claim the decision lacked a rational legal basis, that the president made the decision before the Committee on Foreign Investment in the United States had provided an assessment, and accuse rival Cleveland-Cliffs and United Steelworkers union leader of engaging in anticompetitive practices to sabotage the deal.
President-elect Donald Trump has expressed opposition to the acquisition as well, favoring policies to strengthen U.S. Steel’s market position.
As the Lord Leads, Pray with Us…
- For the judge who will hear the case regarding the blocked acquisition of U.S. Steel.
- For the president and president-elect to seek God’s wisdom in responding to the proposed merger.
Sources: DailyWire, AP News
