Rivals Nippon Steel and US Steel deny bomb claims: ‘We are armed’

After being named in a separate lawsuit by Nippon Steel and US Steel against the Biden administration’s decision to block a nearly $15 billion acquisition deal, the CEO of Cleveland-Cliffs is speaking out about his allegations of fraud and anti-competitive behavior.

“My answer [will] given to the court. And I’ve never had so much time to prepare for a trial that I knew was coming. So we are armed to the teeth and the Japanese will learn … about the judicial process in the United States. There are two ways, and we will discuss this in court,” said Lourenco Goncalves in an exclusive interview with “Mornings with Maria” on Tuesday.

“I don’t think any other deal has been scrutinized more than this deal. They actually went through three 90-day review periods,” he continued. “Some were in line with the agreement and others were not in line with it. And the law says that in cases like this, the agreement goes to the President of the United States, and then the President of the United States makes a decision. That’s exactly what happened.”

Last Friday, President Biden announced his decision to block the sale of US Steel to Japan-owned Nippon Steel, with an estimated value of $15 billion. The two steel companies filed a joint lawsuit against the US government in response, saying Biden used “undue influence to advance his political agenda.”

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A separate lawsuit alleges that Cleveland-Cliffs, Goncalves, and United Steelworkers (USW) President David McCall conspired illegally to block work and undermine US Steel’s ability to compete.

Before accepting Nippon’s offer, US Steel rejected Cleveland-Cliffs’ $7 billion buyout offer by 2023.

“Let’s set the record straight once: $7 billion was my first bid, and the auction takes six months,” explained Goncalves. “And in the auction, I went up to $54 per share. And my number was magically beaten by a dollar in the last hours.”

“The bottom line is, this deal was bought illegally,” the CEO said before clarifying that Cleveland-Cliffs is no longer interested in buying US Steel.

“[The] the situation has changed. The market background has changed. We have a new president coming to town… And Trump said right away that the deal would be blocked immediately. “Biden took more than a year to do what he had to do, and now the Japanese seem surprised by the result,” added Goncalves.

A White House spokesman clarified last week that Biden’s decision was made on the basis of national security, and that “he will never hesitate to protect the security of this nation, its infrastructure, and the strength of its supply chains.”

Despite legal action by Nippon and US Steel, Goncalves believes the deal has no chance of being renewed.

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“Nippon Steel cannot and will not buy US Steel. That is US Steel, so an American company should continue to be American,” the CEO said. “The deal is closed and suing the President of the United States is a bad idea.”

In a prepared statement on Monday, Nippon and US Steel said: “From the beginning of the process, Nippon Steel and US Steel have engaged in good faith with all parties to emphasize how the Transaction will enhance, not threaten, US national security. , including revitalizing communities that rely on American steel, strengthening America’s steel supply chain, and strengthening America’s domestic steel industry against the threat from China… Nippon Steel is the only partner both willing and able to invest necessary money.”

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FOX Business’ Stephen Sorace contributed to this report.