Nippon Steel will hold a news conference on Tuesday to address its options after US President Joe Biden blocked the Japanese company's takeover of US Steel. Both companies called the move to derail the deal a "political decision" that violates the law.

Nippon Steel President Imai Tadashi said in his New Year's address on Monday that the company remains determined to expand in the US. He added that Nippon Steel will take all appropriate action to protect its legal rights.

Sources say the company is poised to file a lawsuit against the US government.

Both steelmakers agreed on the takeover in December 2023. The Committee on Foreign Investment in the United States reviewed the deal, but failed to reach a consensus.

It was then referred to Biden, who blocked the acquisition on Friday, citing national security concerns.

Japan's Economy, Trade and Industry Minister Muto Yoji said the decision is a concern for other Japanese industries considering further investment in the US.

He said: "I believe this deal would be beneficial for both countries, and I understand workers of US Steel have voiced support for it. The Biden administration's decision citing national security concerns is very disappointing and difficult to understand."

Muto added that Tokyo has asked Washington to further explain the reasoning behind its decision.

Biden's order requires the steelmakers to take all necessary steps to "fully and permanently abandon" their planned transaction by February 2.