TOKYO (AP) — Nippon Steel was standing firm on its proposed $15 billion acquisition of U.S. Steel, Chief Executive Eiji Hashimoto said Tuesday after President Joe Biden 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, arguing 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 became public 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 would create a formidable force in an industry now dominated by the Chinese. The merger would created jobs and an economic impact of up to $1 billion, the companies said.
Hashimoto reiterated that Nippon Steel and U.S. Steel were “united as one” in wanting the deal. They agree 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.
“We will vigorously defend our rights to complete this transaction and secure the future of U.S. Steel,” the Pittsburgh-based manufacturer said in a recent statement.
Japanese Prime Minister Shigeru Ishiba also supports the deal, denying any security concerns.
Biden leaves the White House on Jan. 20, but incoming President Donald Trump also opposes the acquisition.
The Committee on Foreign Investment in the United States didn’t reach a consensus on possible national security risks when it reviewed the proposal.
Fitch Group’s CreditSights categorized the opposition to the deal as primarily political, while adding U.S. Steel can remain “a standalone company,” benefiting from a recent rise in steel prices.
“In short, U.S. Steel does not necessarily need to be sold,” it said in an analysis Monday.