Company ends legal fight against Cleveland-Cliffs and steelworkers’ union leaders after failed $14 billion acquisition attempt**
Nippon Steel has officially dropped its federal lawsuit against Cleveland-Cliffs CEO Lourenco Goncalves and United Steelworkers (USW) President Dave McCall. The lawsuit had accused the two of conspiring to derail Nippon’s proposed $14 billion acquisition of U.S. Steel.
Filed in January 2025, the lawsuit followed the Biden administration’s decision to block the deal on national security grounds. Nippon Steel alleged that both Goncalves and McCall worked behind the scenes to influence political opposition and regulatory pressure against the acquisition. The Japanese steelmaker claimed their actions contributed to the U.S. government’s decision to halt the transaction.
Cleveland-Cliffs, a competing bidder for U.S. Steel, has long maintained close ties with the United Steelworkers union. The union publicly supported Cleveland-Cliffs’ efforts to acquire U.S. Steel, arguing that keeping the company under American ownership was vital for national interests and for protecting union jobs.
At the time of the lawsuit’s filing, Nippon Steel argued that the opposition was not based on national security concerns, but rather a coordinated campaign to torpedo the deal in favor of Cleveland-Cliffs. Goncalves and McCall strongly denied those allegations, calling the lawsuit unfounded and politically motivated.
The decision to drop the lawsuit comes as Nippon Steel appears to be shifting focus away from the failed merger and toward strengthening its global operations through other avenues. The company has not provided specific details about the reasoning behind the withdrawal but indicated that continuing the legal battle was no longer aligned with its strategic goals.
A spokesperson for Cleveland-Cliffs said the company is “pleased” that Nippon Steel has chosen to dismiss the case. The United Steelworkers union has not yet commented on the development.
While the legal conflict appears to be over, the broader implications of the failed U.S. Steel acquisition remain significant. The case highlighted growing concerns over foreign investment in critical U.S. industries and illustrated the complex relationship between corporations, labor unions, and federal regulators.
For now, U.S. Steel remains independent, and Nippon Steel seems to be stepping back from what had become a deeply contentious and politically sensitive takeover attempt.
