Nippon Steel remains resolute in its $15 billion acquisition bid for U.S. Steel, Chief Executive Eiji Hashimoto stated on Tuesday, following President Joe Biden’s decision to block the Japanese steelmaker’s attempt.
“There is no reason or need to give up,” Hashimoto told reporters at the company’s Tokyo headquarters. “We are convinced it’s clearly beneficial for both nations.”
Hashimoto acknowledged that achieving the acquisition could be a lengthy process but emphasized that the companies’ latest legal actions in the United States marked a significant step forward.
Nippon Steel Corp. and U.S. Steel filed federal lawsuits on Monday, challenging the Biden administration’s decision, which they claim disregards “the rule of law.”
The lawsuits, filed in the U.S. Court of Appeals for the District of Columbia and the U.S. District Court for the Western District of Pennsylvania, argue that the acquisition would “enhance, not threaten, United States national security.”
President Biden blocked the transaction on Friday, citing the need for U.S. steel producers to “keep leading the fight on behalf of America’s national interests.”
Proponents of the acquisition, which has been under consideration for more than a year, point to Japan’s role as a key U.S. ally and a significant investor in American companies.
They argue that combining Nippon Steel and U.S. Steel would create a formidable competitor in a global steel industry increasingly dominated by China, while generating jobs and contributing up to $1 billion in economic impact.
Hashimoto reiterated that Nippon Steel and U.S. Steel were aligned in their pursuit of the deal.
He stated that both companies consider Biden’s decision to be unlawful and invalid, expressing hope that they could build support for the acquisition.
“The U.S. market remains a key part of Nippon Steel’s global strategy,” Hashimoto said.
U.S. Steel Corp. has accused the Biden administration of overreach in blocking the deal.
“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 statement.
Japanese Prime Minister Shigeru Ishiba also voiced his support for the acquisition, denying any national security concerns.
Although President Biden’s term ends on Jan. 20, incoming President Donald Trump has also expressed opposition to the deal.
The Committee on Foreign Investment in the United States, which reviewed the proposed acquisition, did not reach a consensus on whether the transaction posed national security risks.
CreditSights, a division of Fitch Group, described the opposition to the deal as primarily political. In a Monday analysis, the firm noted that U.S. Steel is capable of remaining “a standalone company” and could benefit from recent increases in steel prices.
“In short, U.S. Steel does not necessarily need to be sold,” the analysis concluded.