Nippon and US Steel file lawsuits to save blocked merger

Investing.com -- Nippon Steel Corp. and United States Steel Corp (BVMF:USSX34 ). have taken legal action in an attempt to save their proposed merger, which was halted by President Joe Biden last week. The two steel giants announced on Monday that they had jointly filed a lawsuit against Biden's decision in the US Court of Appeals for the District of Columbia Circuit.

In addition to this, they have also initiated a lawsuit in the US District Court for the Western District of Pennsylvania. This legal action is against their competitor, Cleveland-Cliffs (NYSE:CLF ) Inc., Cliffs’ CEO Lourenco Goncalves, and David McCall, the President of the US Steelworkers union.

These lawsuits represent a significant effort by Nippon Steel Corp. and United States Steel (NYSE:X ) Corp. to challenge the blockage of their planned merger. The decision to halt the merger was made by President Biden last week, prompting the companies to take these legal steps.

The companies made the announcement of their legal action on Monday, stating that they had filed the lawsuits in both the US Court of Appeals for the District of Columbia Circuit and the US District Court for the Western District of Pennsylvania. The latter lawsuit is against Cleveland-Cliffs Inc., its CEO Lourenco Goncalves, and US Steelworkers union President David McCall.

The companies are seeking to overturn the decision that blocked their merger, as well as challenge their competitor and union leadership. The results of these lawsuits will be closely watched, as they could have a significant impact on the future of the two companies and the steel industry.

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Source: Investing.com