Cleveland-Cliffs renews efforts to acquire US Steel

According to an anonymous source familiar with the matter, Cliffs is aiming to purchase all of US Steel and then sell its Big River Steel mill to Nucor if the deal is completed.

Lourenco Goncalves, CEO of Cleveland-Cliffs, reiterated in a press conference that he wanted to bid again for US Steel after making a rejected offer in 2023 and had a plan, but declined to elaborate on details.

"I'm happy that I'm in a position to make an offer that will execute on the wishes of the board and the management," Goncalves said. "They sell, they go away. We take over. We do good. America will be better, America will be stronger," he added.

Japanese steelmaker Nippon Steel’s $14.9 billion bid for US Steel was blocked by President Joe Biden in a 7 January executive order that cited unspecified national security concerns.

US Steel said in a statement it remained ‘committed to completing’ its merger with Nippon Steel.

"Only Nippon Steel's partnership will deliver $55 per share to our shareholders and guarantee the significant capital investments and technology sharing needed to ensure a strong US Steel for generations to come and protect jobs," it added.

Enforcement of Biden's order, which gave the parties 30 days to unwind the transaction, was postponed until June after the companies sued the US president, alleging he violated the constitution by depriving them of due process when he blocked the deal.

Nippon Steel and US Steel also sued Goncalves and Cliffs, alleging ‘illegal and coordinated actions’ aimed at scuttling the deal in order to ‘monopolize the domestic steel markets.’

Cliffs described the lawsuit as ‘baseless.’

Source: Reuters