An alliance that has fallen into political logic...What will Japan do with US Steel?

[Anchor]
Japan Steel as well as the Japanese government strongly opposed the U.S. government's refusal to buy US Steel.

They say they have abandoned the alliance due to political logic and will take all necessary measures.

Reporter Kwon Young-hee reports.

[Reporter]
Japan Steel, which failed to acquire US Steel, was more opposed than expected.

U.S. President Biden has accused him of illegally engaging in political intervention.

He immediately filed a lawsuit seeking the nullification of Biden's acquisition order and the U.S. government's review.

[Eiji Hashimoto / Chairman of Nippon Steel: We will never give up our business expansion in the United States. There's no reason or need to give up. On this, Japan Steel and US Steel share the same view.

The reasons for the U.S. government's refusal to take over are national security and supply chain risks.

[Karyn Jean-Pierre/White House Press Secretary] Steel and steel workers are the backbone of our economy and national security and the driving force behind our cars, infrastructure and defense.]

But everyone knows the truth is that it's because of the opposition of the 850,000-member National Steel Workers Union.

In addition, US Steel's headquarters are in Pittsburgh, Pennsylvania, the largest contested state that determines the outcome of the presidential election.

Political factors, not economic reasons, have played a role, and relations with the largest ally have also been broken.

[Nicholas Economes/Professor of New York University's Stern School of Business: If US Steel accepts the merger, Japanese and American companies will merge to become a stronger company.]

Japan Steel, which has to pay a penalty of more than $565 million and 800 billion won if it fails to complete the acquisition by June, is on fire.

That's why I even filed a lawsuit in a U.S. court.

However, the litigation battle takes a long time and there is no guarantee of winning.

Therefore, Japan Steel's separate acquisition of US Steel's production plants may be a realistic alternative.

It is also likely to strengthen its joint venture in the U.S., which was established with ArcelorMittal, one of the world's largest steelmakers.

I'm YTN's Kwon Younghee.

Video editing: Han Kyung-hee