Japan's Nippon Steel is not backing down! 🇯🇵🔨
Nippon Steel's CEO Eiji Hashimoto made it crystal clear on Tuesday: they're not giving up on acquiring U.S. Steel, despite President Joe Biden's decision to block the $14.1 billion deal. 😲
At a press conference, Hashimoto expressed frustration over what he called a politically motivated move. \"We firmly believe that the various facts that will come to light through the litigation will demonstrate that this decision clearly violated the constitution and laws,\" he said. 📜⚖️
But what's the backstory? Let's break it down. 🕵️♂️
Nippon Steel had its eyes set on U.S. Steel, aiming for a deal that Hashimoto describes as \"extremely beneficial to Japan and the U.S.\" However, President Biden issued an order last Friday blocking the acquisition, citing national security concerns. 🚫🇺🇸
Hashimoto isn't buying it. He claims the review by the Committee on Foreign Investment in the United States (CFIUS) was tainted due to \"illegal intervention\" by Biden. Nippon Steel has filed lawsuits against the U.S. government, Cleveland-Cliffs Inc. (a rival steel company), its CEO Lourenco Goncalves, and the president of the United Steelworkers union, David McCall. 🏛️👨⚖️
\"We are not going to give up. There is no reason or need to give up,\" Hashimoto asserted. 💪
The lawsuit alleges that Biden \"ignored the rule of law to gain favor with\" the United Steelworkers union—a key supporter of his Democratic Party that opposes the takeover by the Japanese company. 😮
Nippon Steel and U.S. Steel are asking the court to nullify Biden's order and have CFIUS conduct a new review of the deal. Time is ticking, as Biden's order demands the two companies abandon the transaction within 30 days. ⏳
Meanwhile, both steelmakers remain optimistic. \"We remain confident that the transaction is the best path forward to secure the future of U.S. Steel, and we will vigorously defend our rights to achieve this objective,\" they said in a joint statement. 🤝
This high-stakes drama between major steel players and the U.S. government is heating up! 🔥 Keep an eye out as this story unfolds. 👀
Reference(s):
cgtn.com
