A major deal in the steel industry hit a major roadblock Friday after President Joe Biden blocked Japanese-based company Nippon Steel from acquiring U.S. Steel for $15 billion, a controversial deal that had been in the works for months.
The move leaves U.S. Steel, founded in 1901 and headquartered in Pittsburgh, in the U.S.
"A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains," Biden said in a statement.
While the decision was lauded by fellow Democrats, Gary, Indiana mayor Eddie Melton expressed disappointment in Biden's move.
"We felt the technology that Nippon was bringing to this steel production process was going to help enhance and make it a cleaner process," Melton said. "The criticism I received from supporting this deal was well worth it. I have to be the chief advocate for this community."
He said Nippon pledged a $300 million investment into the Gary Works Steel Plant, believing it would allow for cleaner production of steel in Northwest Indiana at a larger scale.
He also said there was no clear evidence of national security threats, something Nippon leaders echoed in their statement Friday.
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“It is shocking — and deeply troubling — that the U.S. government would reject a procompetitive transaction that advances U.S. interests and treat an ally like Japan in this way," a statement from Nippon said in part.
Local lawmakers stood by Biden's decision.
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"We have to stop this ability of these corporations to take American jobs into other places," Illinois 3rd District Representative Delia Ramirez said. "The steel companies are so true to who we are, to our DNA, to who we are as Americans. And it's so incredibly important that these jobs remain here in the United States."
Jesús "Chuy" García, Illinois' 4th District Representative, agreed.
"This transaction would have enabled a foreign country, Japan, to assume ownership of this critical industry in the U.S.," Garcia said.
The deal also met opposition from United Steelworkers Union President David McCall, who said it would diminish the U.S.' national security interests and steel production capacity.
Though Biden will leave the Oval Office in just over two weeks, McCall said he has no fears of President-elect Donald Trump reversing the decision. Trump has yet to comment on the blocked deal.
