11:20 AM EST, 01/03/2025 (MT Newswires) -- United States Steel ( X ) and Japan's Nippon Steel said Friday that they will "take all appropriate action to protect their legal rights" after President Joe Biden blocked Nippon Steel's acquisition of United States Steel ( X ).

The companies said in a joint statement that the decision to block the proposed deal violates "due process and the law governing Committee on Foreign Investment in the United States." The two steelmakers said Biden's order to block the deal doesn't present "any credible evidence of a national security issue, making clear that this was a political decision."

Biden had earlier said the proposed acquisition would put US Steel under foreign control and create risk for national security and critical supply chains.

The companies also said that to address any concerns from the Committee on Foreign Investment in the United States, Nippon Steel voluntarily committed to several mitigation measures, which the US government can enforce. These included ensuring the majority of US Steel's board is made up of US citizens and appointing US citizens as chief executive officer and chief financial officer. However, CFIUS did not consider any of the proposals, they said.

Shares of United States Steel ( X ) were down almost 7% in recent trading activity.

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