According to Reuters, Nippon Steel NPSCY is eager to engage with Donald Trump‘s incoming administration to finalize a takeover of U.S. Steel X. This comes after President Joe Biden blocked a $14.9 billion acquisition, leading to lawsuits filed by both companies.
What Happened: In an opinion piece in the Wall Street Journal on Wednesday, Takahiro Mori, vice chairman of Nippon Steel, expressed the company’s determination to pursue the transaction.
“Nippon Steel and U.S. Steel will do whatever it takes to close this transaction,” Mori stated, emphasizing their strong legal position and anticipation of court proceedings.
Trump is set to assume office on Monday. Enforcement of Biden’s order, which mandated the unwinding of the deal within 30 days, has been postponed until June due to the legal challenge. Mori highlighted the importance of partnerships with the new administration to bolster U.S. Steel for the benefit of American stakeholders.
Meanwhile, Cleveland-Cliffs is collaborating with Nucor to potentially present an all-cash bid for U.S. Steel, as reported by Reuters. Mori reiterated Japan’s alliance with the U.S. and dismissed national security concerns regarding the takeover.
Why It Matters: The legal battle between Nippon Steel and the Biden administration over the blocked acquisition of U.S. Steel has been ongoing. In early January, Nippon Steel CEO Eiji Hashimoto criticized tariffs as insufficient for strengthening the U.S. steel industry and defended the merger, arguing it would enhance U.S. national security by creating a more robust company.
The lawsuit filed by Nippon Steel challenges the Biden administration’s decision, claiming it violated constitutional due process rights. Legal experts suggest that this lawsuit might extend the timeline for the deal, allowing for alternative deal structures. The opposition from Biden was reportedly aimed at securing union support in Pennsylvania, a key state in the political landscape.
Price Action: United States Steel was up by 1.37% in overnight trading on Robinhood at 2:43 am ET.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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