Japan's Nippon Steel and United States Steel have filed a joint lawsuit against the US government over President Joe Biden's move to block the Japanese company's buyout of the American steelmaker, local media reported Monday.
The two steelmakers are asking for a review of the deal by the Committee on Foreign Investment in the United States (CFIUS), terming Biden's order "unlawful political interference," public broadcaster NHK reported.
The case was filed in the US Court of Appeals for the District of Columbia Circuit.
The two companies also filed another lawsuit against Cleveland-Cliffs, its Chief Executive Officer Lourenco Goncalves, and USW union President David McCall "for their illegal and coordinated actions" that seek to prevent the deal.
Japanese Prime Minister Shigeru Ishiba on Monday said his country might suffer from repercussions on bilateral trade in the wake of the US president's move and said he would seek clarification over the national security risk cited by Biden.
"This is true unfortunately that Japanese business circles have raised concern over future investments between Japan and the US," Ishiba said at his first press conference of the year.
Japan's Economy, Trade and Industry Minister Yoji Muto has told reporters Monday that the president's decision is "extremely regrettable and hard to understand," while adding the Japanese government will continue asking the Biden administration to clear concerns among the business communities in the two countries.
Nippon Steel and US Steel agreed to the takeover deal in December 2023. The CFIUS reviewed the transaction but could not agree on a decision. The case was subsequently referred to Biden, according to Xinhua news agency.
Biden said Friday that he has decided to block the 14.1 billion US dollars sale of US Steel to Nippon Steel, citing risks to national security, while urging the two companies to "fully and permanently" abandon their plan.
The Japanese steel giant, the world's fourth-largest by production volume, will hold a press conference detailing their case on Tuesday.
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