Japan’s Ishiba Requests Biden to Address Concerns Over Blocking Steel Takeover Deal

Tokyo: Japanese Prime Minister Shigeru Ishiba has urged US President Joe Biden to address the “strong concerns” raised within both Japanese and US business circles regarding Biden’s decision to block Nippon Steel’s takeover of U.S. Steel.

During an online meeting with Biden, Ishiba conveyed Japan’s worries about the disruption caused by the US government’s decision, as reported by Jiji Press.

Strong Concerns Raised in Both Japan and the US

“Strong concerns are being raised not only in Japan but also in the US business community. I strongly urged that these concerns be dispelled,” Ishiba stated in his address to reporters. However, he did not reveal Biden’s response to his request.

On January 3, President Biden decided to block the takeover of US Steel by Japan’s Nippon Steel, citing national security risks. He further urged the two companies to “fully and permanently” abandon their merger plans.

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Delays and Legal Challenges Over the Deal

On Saturday, both Nippon Steel and U.S. Steel announced that the Biden administration had delayed the order for the Japanese company to abandon its $14.1 billion bid for U.S. Steel until June.

Nippon Steel’s CEO, Eiji Hashimoto, has criticized Biden’s decision, claiming it was politically motivated and asserting that the company intends to continue its pursuit of the takeover. Hashimoto emphasized that the legal challenges against the US government, Cleveland-Cliffs Inc., and the United Steelworkers labor union, which opposes the deal, would continue.

Lawsuits and Legal Challenges Against Biden’s Decision

Hashimoto stated, “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 added that the review conducted by the Committee on Foreign Investment in the United States (CFIUS) was not properly handled due to what he described as Biden’s “illegal intervention,” a stance Nippon Steel is unwilling to accept.

The Japanese steel giant filed a lawsuit against Biden’s order, alleging that the decision was made to gain favor with the United Steelworkers union, which has supported Biden’s Democratic Party. Nippon Steel and U.S. Steel are now requesting the court to annul Biden’s order and compel CFIUS to conduct a fresh review of the deal. Biden’s order demands that the companies abandon the transaction within 30 days, unless an extension is granted by CFIUS.