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Nippon Steel and US Steel have filed two US lawsuits alleging “wrongful interference” after a proposed $15bn combination between the steelmakers was blocked by President Joe Biden just days ago.

In a statement on Monday, the companies said the first suit had been filed Bidenthe decision to be set aside due to “unlawful political interference” in the process.

A second lawsuit was filed against rival steel producer Cleveland-Cliffs, its chief executive Lourenco Goncalves and United Steelworkers president David McCall, alleging “illegal and co-ordinated actions which is aimed at preventing the transaction”.

“Today’s legal actions reflect the continued commitment of Nippon Steel and US Steel to complete the transaction,” the companies said in the statement.

The legal claim marks the latest twist in a takeover saga that has put U.S.-Japan relations under considerable strain, signaled a new conflict in the U.S. investment climate and called into question the independence of America’s national security investment screening mechanism.

In an order was released on Friday blocking the deal, Biden said there was “credible evidence” that, by acquiring, Nippon could take steps that would harm US security.

Through the cases, Nippon and US Steel aims to establish that Biden “disregarded the rule of law” to curry favor with unions and support his political agenda and that the Committee on Foreign Investment in the US (Cfius), which investigates buyers overseas US companies, failed to conduct a good faith review.

The Cfius process was intended to achieve a “pre-determined outcome” after Biden outlined his opposition to the transaction in March, before any security review took place, the companies added.

They also aim to show that US rival Cleveland-Cliffs is seeking to prevent any buyer from acquiring US Steel as “part of a wider illegal campaign to monopolize domestic steel markets “.

Cleveland-Cliffs, a rival US steelmaker, was created an unsolicited offer to buy US Steel in July 2023, after which a wider auction was held where Nippon came out on top.

USW’s McCall said on Monday: “By preventing Nippon Steel’s attempt to take over US Steel, the Biden administration is protecting vital US interests, protecting our national security and helping to preserve a domestic industry steel that underpins our nation’s critical supply chains.” He added that the union is “investigating the complaint and will vigorously defend against these baseless allegations”.

Cleveland-Cliffs did not immediately respond to a request for comment.

The legal action came after Biden vetoed the deal due to Cfius’ failure to reach consensus on whether the deal threatened national security.

Nippon has made significant efforts to address concerns by pledging to invest $2.7bn to modernize facilities and guarantee no reduction in production capacity at most sites for 10 years without US government approval.

Biden’s decision to cancel Nippon’s acquisition of the US’s iconic rival threatens to cause chaos for the alliance and business relationship with the US’s most important east Asian partner and largest investor.

Japanese Prime Minister Shigeru Ishiba warned at a press conference on Monday that the US should explain more clearly why there are security concerns and said its blockade sends a chilling message to those prospective Japanese investors in the US.

“It is unfortunate that worried voices are being raised within the Japanese industrial sector about future US investment,” he said. “We cannot help but take these concerns seriously and we strongly urge the US government to address these concerns.”

US presidents have vetoed eight other takeover deals following Cfius reviews since 1990, according to the Congressional Research Service, but none with a Japanese company until last week.

There is precedent for the US government being embroiled in a legal battle after the president blocked a takeover deal.

In 2015, Chinese-owned Ralls won a settlement after claiming the US government violated due process when it ordered it to divest four wind farms near a military base in Oregon after a Cfius review.