A major deal in the steel industry hit a major hurdle Friday after President Joe Biden blocked Japan’s Nippon Steel from acquiring US Steel for $15 billion, a controversial deal that has been in the works for months.
The move leaves US Steel, founded in 1901 and headquartered in Pittsburgh, United States.
“A strong, domestically owned and operated steel industry represents a critical national security priority and is essential to resilient supply chains,” Biden said in a statement.
While the decision was praised by his fellow Democrats, Gary, Indiana Mayor Eddie Melton expressed disappointment in Biden’s decision.
“We thought the technology that Nippon was bringing to this steel production process was going to help make it better and make it cleaner,” Melton said. “The criticism I received for supporting this deal was worth it. I need to be the primary advocate for this community.”
He said Nippon committed to investing $300 million in the Gary Works steel mill, believing it would enable cleaner steel production in Northwest Indiana on a larger scale.
He also said there was no clear evidence of threats to national security, something Japanese leaders echoed in their statement Friday.
“It is shocking – and deeply troubling – that the U.S. government would reject a pro-competitive transaction that favors U.S. interests and thereby treat an ally like Japan,” a statement from Japan said in part.
Local lawmakers stood by Biden’s decision.
“We need to end this ability of these companies to move American jobs to other places,” said Rep. Delia Ramirez, Illinois’ 3rd District. “Steel companies are so true to who we are, to our DNA, to who we are as Americans. And it’s extremely important that these jobs stay here in the United States.”
Illinois 4th District Representative Jesús “Chuy” García agreed.
“This transaction would have allowed a foreign country, Japan, to take ownership of this essential industry in the United States,” Garcia said.
The deal also faced opposition from United Steelworkers union President David McCall, who said it would harm U.S. national security interests and its steel-producing capacity.
Although Biden will leave the Oval Office in a little more than two weeks, McCall said he has no fear that President-elect Donald Trump will reverse his decision. Trump has yet to comment on the stalled deal.
NBC Chicago
