Nippon Steel will contest Biden’s decision to block acquisition of US Steel – Observer

Japanese steelmaker Nippon Steel reiterated this Monday its determination to challenge US President Joe Biden’s decision to block the acquisition of US Steel, admitting the possibility of moving forward with legal action.

“We will take all possible measures, as We will never give up on expanding our operations in the United States”said the Japanese company in a statement published this Monday, stating however that it intends to confirm some details before speaking to the media.

The statement comes after both steelmakers published a joint statement condemning Biden’s decision and considering that the procedure was illegal as it did not comply with regulations governing the Committee on Foreign Investment in the United States (CFIUS).

Japan’s Nippon Steel criticizes US political opposition to US Steel acquisition

The companies say that Biden’s arguments, which assured that his decision protects “national security”, are unfounded, highlighting that it was an action to favor his own political interests.

The two companies indicate that they will take all appropriate measures to protect their rights, suggesting that legal action would be taken.

Japanese Prime Minister Shigeru Ishiba expressed this Monday the concerns of Japanese industrialists regarding their investments in the United States, after Washington rejected the acquisition of the North American steel company US Steel.

Trump announces he will block Japanese steel giant Nippon Steel from acquiring US Steel

“Unfortunately it is true that the Japanese industrial world is worried about the future of investment (in the United States). We urge the US government to take steps to alleviate these concerns“, Ishiba told reporters, after calling on Washington to “clearly explain” what constitutes “a national security concern”.

The formal blocking of the operation frustrates the merger of the fourth largest steel company in the world by production volume, Nippon Steel, with the twenty-fourth, US Steel, which would create a colossus capable of competing with the others.