Feb 5 (Reuters) - United Steelworkers president David
McCall filed a motion to dismiss a lawsuit filed against him by
U.S. Steel and Nippon Steel ( NISTF ), the union said on
Wednesday.
The two steelmakers filed a lawsuit against McCall, rival
bidder Cleveland-Cliffs ( CLF ), its CEO Lourenco Goncalves last
month "for their illegal and coordinated actions" aimed at
preventing the $14.9 billion deal.
Former President Joe Biden had initially blocked the deal on
national security grounds in January, but delayed its
enforcement until June.
U.S. Steel's takeover by Japan's Nippon Steel ( NISTF ) had become
highly politicized ahead of the U.S. Presidential election in
November, with both Biden and Donald Trump vowing to terminate
it.
The deal also underwent a lengthy antitrust review by the
Committee on Foreign Investment in the United States (CFIUS)
under Biden's Presidency.
The companies also alleged Biden of unlawfully blocking the
deal in another lawsuit filed against his administration.
The deal, which was blocked on national security concerns,
had always faced opposition from the USW on grounds of lack of
transparency and job security risks, despite Nippon's multiple
attempts at assuaging their concerns.
The USW, however, has shown its support for Cliffs, which
was also reported to partner with peer Nucor ( NUE ) to prepare
a potential all-cash bid for U.S. Steel last month.
U.S. Steel and Nippon have alleged Cliffs, Goncalves and
McCall of colluding to allow Cliffs to "monopolize the domestic
steel markets" by thwarting any other attempts to buy the
123-year-old American steelmaker.
McCall filed the motion in the Western District of
Pennsylvania, with USW calling U.S. Steel and Nippon's lawsuit a
"frivolous and unsubstantiated attack" on the union for
exercising its first amendment rights.