Nippon Steel, Japan’s largest steelmaker and the fourth-largest globally, has filed a motion in a U.S. federal court to dismiss a consumer lawsuit aimed at blocking its proposed $14.9 billion acquisition of U.S. Steel. The lawsuit, filed by downstream steel product buyers, alleges that the merger would lead to price increases and violate U.S. antitrust laws.
Nippon Steel argues that the plaintiffs lack legal standing to pursue these claims, labeling the lawsuit as “baseless.” The company points out that the plaintiffs have a history of filing unsuccessful antitrust suits against large corporate mergers. In contrast, Nippon Steel and U.S. Steel assert that the acquisition would enhance U.S. manufacturing competitiveness against China and provide greater job security for American steelworkers.
The Biden administration previously halted the acquisition on national security grounds, prompting Nippon Steel and U.S. Steel to sue, claiming the decision was unconstitutional. The companies are currently engaged in legal battles on multiple fronts, including a lawsuit against the Biden administration and another against Cleveland-Cliffs and the United Steelworkers union for alleged anticompetitive practices.
A lawyer for the plaintiffs, Joseph Alioto, countered that Nippon Steel lacks both the facts and legal basis to support the merger, which he believes clearly violates antitrust law. The case is ongoing, with the U.S. Court of Appeals for the D.C. Circuit set to hear arguments on May 12.
Related topics:
