Cleveland-Cliffs Eyes Potential Acquisition of US Steel Cleveland-Cliffs Inc. (CLF.N) is reportedly preparing an all-cash bid to acquire U.S. Steel Corp. (X.N), according to sources familiar with the matter.
The proposed offer, expected to be in the high $30s per share, comes amid significant industry and political scrutiny.
Cliffs’ potential bid would involve selling US Steel’s Big River Steel mill to Nucor Corp. (NUE.N) if the transaction proceeds. This partnership aligns with Cliffs CEO Lourenco Goncalves’ vision of a stronger, consolidated American steel industry. During a recent press conference in Pennsylvania, Goncalves described his plan as an “all-American solution” aimed at bolstering the domestic steel sector while maintaining the iconic US Steel name.
The move follows the Biden administration’s recent intervention to block a $55-per-share all-cash bid for US Steel by Japan’s Nippon Steel (5401.T), citing unspecified national security concerns. Nippon Steel’s bid, valued at $14.9 billion, included commitments to modernize US Steel’s facilities but faced opposition from political leaders and the United Steelworkers union.
The US government extended the deadline for Nippon Steel to abandon its acquisition plans until June 2025, leaving the door open for further negotiations or challenges. Both Nippon Steel and US Steel have filed lawsuits, accusing Cliffs and Goncalves of coordinated efforts to undermine their merger agreement.
The United Steelworkers union, which previously supported Cliffs’ 2023 bid for US Steel, has indicated it will scrutinize any new offers with a focus on job security and long-term industry stability. Cliffs’ earlier proposal faced antitrust concerns, as it would have consolidated much of the US iron ore and steel market under one entity.
Nippon Steel has argued that its proposal offers the best financial and strategic value for US Steel, pledging investments to enhance competitiveness against global players like China. However, Cliffs has countered these claims, with Goncalves criticizing Nippon Steel’s role in the global steel market and emphasizing the need for US Steel to remain under domestic ownership.
Reuters and the Associated Press contributed to this report.
