Biden's Steel Block: Political Maneuvers Alleged in $14.9 Billion Deal

Nippon Steel and U.S. Steel allege that President Biden unlawfully blocked their merger bid, citing political influence rather than genuine national security concerns. A lawsuit seeks to overturn this decision, highlighting bias in the review process and questioning Biden's motives ahead of the U.S. election.

Nippon Steel and U.S. Steel have filed a lawsuit accusing President Joe Biden of unlawfully blocking their $14.9 billion merger. The companies argue that Biden's actions, influenced by political motives, compromised the integrity of the national security review process.

The legal action, filed in the U.S. Court of Appeals for the District of Columbia, demands a fresh review of the deal devoid of undue political sway. The lawsuit accuses Biden of leveraging the Committee on Foreign Investment in the U.S. (CFIUS) to support his political ambitions, particularly in the battleground state of Pennsylvania.

The controversial merger, pivotal to the steel industry, also faces opposition from rival Cleveland-Cliffs and steelworkers union president David McCall, who insist the company remain domestic. As U.S. Steel's share value rises, the outcome of this legal battle could significantly impact the U.S. steel market landscape.

(With inputs from agencies.)