Japanese PM calls on Biden administration to clarify 'national security' concerns behind decision

Steelmakers Nippon Steel Corporation and United States Steel Corporation (US Steel) filed a lawsuit on Monday against the blockade imposed last week by US President Joe Biden on their purchase and sale operation.

On January 3, Biden blocked the Japanese steelmaker's acquisition of US Steel on national security grounds in a transaction valued at nearly $15 billion.

In a joint statement, both companies accuse the president of "ignoring the rule of law" and "currying the favor of the United Steelworkers (USW) union" to "support his political agenda" in what they describe as "illegal political interference in the process."

A second lawsuit filed by the two companies accuses USW President David McCall and Lourenço Gonçalves, CEO of steelmaker Cleveland-Cliffs -- which offered to buy US Steel in 2023 -- of taking "unlawful and coordinated actions to prevent the transaction."

"Today's legal actions demonstrate Nippon Steel and US Steel's continued commitment to completing the transaction," they added in their statement.

"Nippon Steel and US Steel remain confident that the transaction is the best path forward to secure US Steel's future, and we will vigorously pursue our rights to achieve this goal," the two companies concluded.

JAPANESE PRIME MINISTER DEMANDS EXPLANATIONS

Speaking to reporters on Monday, Japanese Prime Minister Shigeru Ishiba asked the U.S. government to explain the reasons for Biden's decision, but stressed that his administration maintains that the issue remains a matter of U.S. law alone.

"I find it unfortunate that there are concerns within the Japanese industrial world about future investments between Japan and the United States," the prime minister said in comments reported by the Yomiuri Shimbun newspaper.

"I find it inappropriate to comment on the actions of companies under review under US law, but I will strongly urge the US government to take steps to allay these concerns," he added.

"Either they explain clearly why there is a 'national security' concern or any further discussion on this matter will be of no use," the Prime Minister concluded.