A Deal Under Intense Political Scrutiny
The merger saga unfolded against a shifting political backdrop. In January, President Joe Biden blocked Nippon’s purchase on national security grounds, warning it could weaken domestic steelmaking. Nippon and U.S. Steel sued soon after, claiming the decision was “purely political” and unconstitutional.
Then came a reversal: in April, President Donald Trump ordered a fresh national security review. By June, Trump signed an executive order approving the merger — but only after Nippon and U.S. Steel agreed to strict conditions, including a “golden share” giving the President veto power over major company decisions. The companies finalized the merger that same month.
Case Quietly Ends
Although Judge Horan had earlier dismissed a request for an injunction as moot once the merger went through, Nippon and U.S. Steel signaled they might pursue amended claims. But as the Sept. 8 deadline loomed, the parties abruptly announced the case was over.
“All claims filed in the lawsuit in the Western District of Pennsylvania, including against Cliffs and Cliffs’ CEO Lourenco Goncalves, have been dismissed,” U.S. Steel said in a joint statement with the USW. Both sides emphasized no money changed hands.
