Nippon Steel (JP:5401) and U.S. Steel (X) are trying to save their $14.9 billion merger deal by filing an opening brief in the U.S. Court of Appeals for the District of Columbia Circuit. The brief claims that President Biden’s decision to block the deal was motivated by politics rather than national security concerns. This move sparked a lawsuit from the companies who alleged that Biden’s actions violated due process and statutory procedural requirements.
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The companies argue that the deal would actually improve U.S. national security while also protecting U.S. Steel workers and boosting jobs in steel-reliant communities. In addition, Nippon Steel and U.S. Steel believe that their partnership would make American Steel “bigger and better” and are willing to fight for it in court.
As a result, they are asking the court to set aside the Committee on Foreign Investment in the United States (CFIUS) review process and Biden’s actions. It is worth noting that the litigation is moving forward on an expedited basis, with a briefing set to be completed by March 17. The outcome of this litigation will be closely watched, as it could have significant implications for the steel industry and future foreign investment deals.
Is X Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on X stock based on three Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 18% decline in its share price over the past year, the average X price target of $39.80 per share implies 7.8% upside potential.
