US Steel and fellow steelmaker Cleveland-Cliffs have reportedly agreed to terms on a nondisclosure agreement (NDA) that will allow Cliffs to remain a contender to buy all or part of US Steel.
According to an online report by Reuters, US Steel initially sought a six-month ‘standstill agreement’ that would allow US Steel’s board and management to conduct due diligence on bids without field questions from Cliffs, however, the two companies eventually agreed on a two-month standstill window.
As of 1 October, neither company has posted a notice on its website to confirm the NDA or standstill agreement.
In late August, US Steel stated it had received ‘unsolicited proposals’ which its board was considering. ArcelorMittal and Stelco Holdings have also been reported as bidders, with neither company confirming interest.
Cliffs would rank among the world's top 10 steel producers, which are mostly in Asia, should its bid for US Steel succeed. The company’s commitment to keeping US Steel's blast furnaces running has also won it the support of the United Steelworkers union- which has stated that it will only support Cliffs as an acquirer.