A group of U.S. consumers has filed a lawsuit to stop Nippon Steel’s $14.9 billion purchase of U.S. Steel, arguing that the deal would reduce competition and lead to higher prices for various products.
The lawsuit, filed Wednesday in federal court in San Francisco, claims the merger violates U.S. antitrust laws by consolidating the steel manufacturing industry. The plaintiffs, 16 consumers from states such as California, Florida, Ohio, and Texas, are buyers of steel-related products like cars, appliances, and tools. They argue the merger could result in price-fixing and harm consumers by reducing competition among steel producers in the U.S.
Nippon Steel, the world’s fourth-largest steelmaker, and U.S. Steel, the third-largest steel producer in the U.S., have defended the merger, claiming it will strengthen U.S. manufacturing and create jobs. They argue the deal is essential to competing with China in the global steel market.
The Biden administration temporarily blocked the acquisition last month, citing national security concerns. In response, the companies have filed a lawsuit in Washington, D.C., seeking to reverse the decision, calling it “blatantly unconstitutional.”
The lawsuit is part of a broader legal battle over the deal, with the Biden administration giving courts more time to review the merger. Former President Donald Trump has also expressed opposition to the deal, adding political weight to the ongoing debate.
Nippon Steel has yet to comment on the latest lawsuit, while U.S. Steel, not a defendant in the case, maintains that the acquisition is in the best interest of the U.S. steel industry.
The legal case, titled Donald Freeland et al v. Nippon Steel, is being heard in the U.S. District Court for the Northern District of California.
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