By Robb M. Stewart

Nippon Steel and U.S. Steel said they were suing the U.S. government over the Biden administration's decision to block the Japanese company's $14.1 billion purchase of the American steelmaker.

The two companies said they filed a suit in the U.S. Court of Appeals for the District of Columbia Circuit challenging what they said was a violation of the constitutional guarantee of due process and statutory procedural requirements, as well as unlawful political influence. The suit asks the court to set aside President Biden's blocking order and a review of the proposed deal by the Committee on Foreign Investment in the U.S.

A second lawsuit was filed in U.S. District Court for the Western District of Pennsylvania against Cleveland-Cliffs, the company's Chief Executive Lourenco Goncalves, and Allied Industrial and Service Workers International Union President David McCall. The suit alleges illegal and coordinated action that was aimed at preventing the transaction, and attempting to undermine U.S. Steel's ability to compete and Nippon Steel's ability to provide U.S.-made steel to American consumers.

In a move to keep the U.S. Steel domestically owned, Biden blocked the Nippon Steel deal after the Committee on Foreign Investment in the U.S. spent months reviewing it for potential national-security risks. In an order Friday, the White House required the companies to abandon the deal within 30 days unless CFIUS agrees to extend the timeline.

Nippon and U.S. Steel said the legal actions are necessary to protect their right to proceed with the transaction "free from illegal and improper political and anticompetitive interference."

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 06, 2025 07:55 ET (12:55 GMT)

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