By The Associated Press’s Yuri Kageyama
Tokyo (AP) Following President Joe Biden’s blocking of the top Japanese steelmaker’s bid, Nippon Steel CEO Eiji Hashimoto declared Tuesday that the company was sticking to its $15 billion acquisition plan of U.S. Steel.
He told reporters at the company’s Tokyo headquarters that there was no need or motive to give up. We really believe that it is advantageous for both countries.
He emphasized that the company’s most recent legal action in the United States was a significant development, even if he acknowledged that the endeavor might take time.
On Monday, U.S. Steel and Nippon Steel Corp. filed federal complaints, arguing that the Biden administration’s action violated the rule of law.
The steelmakers contested the Biden administration’s action in separate cases in the U.S. Court of Appeals for the District of Columbia and the U.S. District Court for the Western District of Pennsylvania, arguing that the acquisition will strengthen rather than jeopardize U.S. national security.
Biden said American steel producers must continue to take the lead in the fight for America’s national interests when he blocked the deal on Friday.
Japan is a significant investor in American industries and a U.S. friend, according to proponents of the takeover, which first arose more than a year ago.
Additionally, they contend that the union of Nippon Steel and U.S. Steel creates jobs and an economic impact of up to $1 billion, making them a formidable force in an industry currently controlled by the Chinese.
Hashimoto reaffirmed that U.S. Steel and Nippon Steel shared a same desire for the merger. He told reporters that they both believe Biden’s decision is illegal and incorrect and that they want to be understood for their efforts.
According to Hashimoto, the U.S. market continues to be a crucial component of Nippon Steel’s worldwide strategy.
The Biden administration has been accused of meddling by U.S. Steel Corp.
In a recent statement, the Pittsburgh-based producer said, “We will vigorously defend our rights to complete this transaction and secure the future of U.S. Steel.”
Shigeru Ishiba, the prime minister of Japan, is likewise in favor of the agreement and disputes any security issues.
Donald Trump, the incoming president, is likewise against the deal, but Biden departs the White House on January 20.
Regarding potential national security threats, the U.S. Committee on Foreign Investment, which was examining the deal, was unable to agree.
The deal’s opponents were classified as mostly political by Fitch Group’s CreditSights, which also pointed out that U.S. Steel can continue to operate independently thanks to a recent increase in steel prices.
In summary, it stated in an analysis on Monday that U.S. Steel does not absolutely need to be sold.
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