A lawsuit filed by Nippon Steel and U.S. Steel on Monday (Jan. 6) alleges that U.S. President Joe Biden violated the Constitution by blocking Nippon Steel's $14.9 billion bid for U.S. Steel.
The companies want the federal court to scrap Biden's decision so they can secure another shot at approval.
They want to go through a fresh national security review unfettered by political influence.
The lawsuit alleges Biden prejudiced the decision of the Committee on Foreign Investment in the U.S. - a body that scrutinizes foreign investments for national security risks.
The merger became highly-politicized ahead of the November U.S. election.
Both Trump and Biden pledged to kill it as they wooed voters in the swing state of Pennsylvania, where U.S. Steel is headquartered.
The United Steelworkers union had strongly opposed the tie-up.
The companies allege Biden sought to scrap the deal to "curry favor with the union's leadership in Pennsylvania".
That was even after the Japanese firm offered to move its U.S. headquarters to Pittsburgh, where the U.S. steelmaker is based.
The White House did not immediately respond to a request for comment.
The lawsuit shows the companies are making good on their threats of litigation and will continue to fight to get the deal approved.
https://finance.yahoo.com/video/u-steel-nippon-allege-biden-155301382.html
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