Cleveland Cliffs president and CEO Lorenzo Goncalves argues that Sen. Marco Rubio as secretary of state would be “bad news” for Japan.
The Cleveland Cliffs CEO is speaking out about anticompetitive and theft allegations after Nippon Steel and U.S. Steel were named in a separate lawsuit against the Biden administration's decision to block a nearly $15 billion acquisition deal.
“My answer will be given (in court). And I've never had much time to prepare for a lawsuit that I knew was coming. So we're armored to the teeth, and the Japanese will learn about the judicial process. “In the United States it's a two-way street and we're going to talk about it in court.” in “Morning with Maria” Tuesday
“I don't think any other deal has been scrutinized as much as this one. They actually went through three 90-day periods of analysis,” he continued. “Some were in favor of the deal and some were not. And the law says in that situation, the deal goes to the president of the United States and the president of the United States decides. That's exactly what happened.”
Last Friday, President Biden announced his decision to block nearly $15 billion worth of US steel sales to Japan's Nippon Steel. Two steel companies Filed a joint lawsuit In response, against the US government, it claimed that Biden used “improper influence to advance his political agenda.”
US Steel CEO: Government failed our country after Nippon Steel cut contract
A separate lawsuit alleges that David McCall, president of Cleveland-Cliffs, Goncalves and the United Steel Workers (USW) illegally coordinated to block the deal and undermine US Steel's ability to compete.
The CEO of US-based steelmaker Cleveland-Cliffs denies the claims of the lawsuit by Nippon and US Steel. (FOX Business)
Before accepting Nippon's offer, US Steel rejected Cleveland-Cliffs' $7 billion acquisition offer in 2023.
Let's set the record straight once and for all: $7 billion was my initial bid, and the auction will take approximately six months, Goncalves explained. “And through the auction, I went up to $54 a share. And then my number was magically beaten by a dollar in the last hours.”
“The bottom line is that this deal was bought illegally,” the CEO said, before explaining that Cleveland Cliffs is no longer interested in buying US Steel.
US Steel and Nippon Steel have announced that they have filed joint lawsuits against the US government and others following President Biden's move to block the deal. Lydia Ho FOX Business with more.
“The situation has changed. The market background has changed. We have changed The new president is coming to town…and Trump immediately said that the deal would be blocked immediately. It took Biden over a year to do what he needed to do, and now the Japanese seem surprised by the outcome.”
A White House spokesman clarified last week that Biden's decision was based on national security and that he “will never hesitate to protect the security of this country, its infrastructure and the resilience of its supply chains.”
Despite legal action by Nippon and US Steel, Goncalves believes the deal has no chance of being revived.
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Brigg Macadam LTD Founding Partner Greg Swenson has reacted to Biden's blocking of a takeover of US Steel, sharing his “positive” market outlook for 2025.
“Nippon Steel cannot and will not buy US Steel. This is US steel, so the US company must continue to be American,” said the US company's CEO. “This transaction has been blocked and complained about President of the United States It's a bad idea.”
In a prepared statement Monday, Nippon and US Steel said: “From the beginning of this process, both Nippon Steel and US Steel have engaged in good faith with all parties to emphasize how this transaction will enhance US national security. No, he threatens. Among other things, by revitalizing communities that rely on American steel, strengthening the American steel supply chain, and strengthening the American domestic steel industry against the threat of China… Nippon Steel is the only partner. He is both willing and able to make the necessary investments.”
FOX Business' Stephen Souris contributed to this report.