Nippon Steel has asked a U.S. court to dismiss a consumer lawsuit aiming to block its proposed $14.9 billion acquisition of U.S. Steel, calling the claims “baseless” and arguing that plaintiffs lack legal standing. The lawsuit, filed in February, alleges the deal would violate antitrust laws by consolidating the steel market and raising prices.
Key Arguments:
Nippon Steel: Claims consumers, as downstream buyers, cannot prove harm from the merger and accuses plaintiffs of filing “numerous other unsuccessful antitrust suits.”
Plaintiffs: Argue the deal would “very clearly” violate antitrust laws, with lawyer Joseph Alioto stating Nippon lacks factual and legal support.
Regulatory Hurdles:
The Biden administration halted the deal in January, citing national security concerns, prompting Nippon and U.S. Steel to challenge the decision in court.
The Trump administration’s Justice Department has requested more time for negotiations, delaying a D.C. Circuit hearing to May 12.
Defense of the Deal:
Nippon and U.S. Steel argue the merger would bolster U.S. manufacturing competitiveness against China and secure jobs for American steelworkers.