Cleveland-Cliffs Chairman and CEO Lorenzo Goncalves argues that Sen. Marco Rubio serving as secretary of state is 'bad news' for Japan.
After being named in a separate Nippon Steel and US Steel lawsuit against the Biden administration's decision to block a nearly $15 billion purchase deal, the Cleveland-Cliffs CEO is speaking out about his racketeering and anti-competitive allegations.
“My response [will] will be given to the court. And I didn't have that much time to prepare for the lawsuit that I knew was coming. So we're armed with 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 discuss it in court,” Lourenco Goncalves said in an exclusive interview. On “Mornings with Maria”. tuesday
“I think this contract has been under more scrutiny than any other contract. They've actually gone through three 90-day reviews,” he continued. “Some were in favor of the treaty and some were not. And the law says that in a situation like this, the treaty 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 stop selling US steel to Japanese-owned Nippon Steel, worth about $15 billion. Two steel companies filed a joint case Against the US government in response, claiming that Biden has “used undue influence to advance his political agenda.”
US Steel CEO: Government Failed Our Country After Canceling Nippon Steel Deal
A separate lawsuit alleged that Cleveland-Cliffs, Goncalves and United Steelworkers (USW) President David McCall illegally coordinated to prevent the transaction and undermine US Steel's ability to compete.
The CEO of American-based steelmaker Cleveland-Cliffs is denying the allegations made by Nippon and US Steel. (Fox Business)
Before accepting Nippon's offer, US Steel rejected Cleveland-Cliffs' $7 billion buyout offer in 2023.
“Let's set the record straight once and for all: $7 billion was my initial bid, and the auction lasted like six months,” Goncalves explained. “And through the auction, I went to $54 a share. And then in the last hour my number was magically beaten by a dollar.”
“The point is, this deal was bought illegally,” the CEO said before clarifying that Cleveland-Cliff was no longer interested in buying US Steel.
US Steel and Nippon Steel announced they are filing a joint lawsuit against the US government and others following President Biden's move to block the deal. With Fox Business' Lydia Hu More.
“[The] The situation has changed. The market landscape has changed. we have A new president is coming to town… and Trump immediately said the deal would be blocked immediately. It took over a year for Biden to do what he had to do, and now the Japanese seem surprised by the results,” Goncalves added.
A White House spokesman clarified last week that Biden's decision was based on national security and that he would “never hesitate to protect the security of this nation, its infrastructure and the resiliency of its supply chain.”
Despite legal action by Nippon and US Steel, Goncalves believes the deal is unlikely to be revived.
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Greg Swenson, founding partner of Brig Macadam Ltd., has reacted to Nippon's blocking US Steel takeover and shared his 'positive' market outlook for 2025.
“Nippon Steel cannot and will not buy US Steel. It is US Steel, so American corporations should be American,” the CEO said. “This deal has been blocked and sued President of the United States A bad idea.”
In a prepared statement Monday, Nippon and US Steel said: “From the beginning of the process, both Nippon Steel and US Steel engaged in good faith with all parties to determine how the transaction would enhance, not threaten, the national security of the United States. Revitalize the communities that depend on American steel. By doing so, strengthening the American steel supply chain and strengthening America's domestic steel industry against the threat from China… Nippon is the only steel partner both willing and able to make the necessary investments.”
Fox Business' Stephen Soares contributed to this report.