U.S. Steel gains as Cleveland-Cliffs and Nucor said to consider joint bid

Investing.com -- United States Steel Corp saw its shares rise over 7% on Monday following a report that Cleveland-Cliffs (NYSE:CLF ) is partnering with Nucor (NYSE:NUE ) in a potential bid for the company. 

According to sources cited by CNBC, Cleveland-Cliffs plans to purchase U.S. Steel entirely for cash and subsequently sell the Big River Steel subsidiary to Nucor. 

The offer is reportedly in the high $30s per share range.

The development follows the recent decision by the White House to block Japan’s Nippon Steel from acquiring U.S. Steel. 

Nippon had offered $55 per share, valuing the deal at over $14 billion. The U.S. government cited national security concerns, emphasizing the importance of maintaining a robust domestic steel industry for supply chain security.

The CNBC report indicates that under the proposed Cleveland-Cliffs and Nucor arrangement, U.S. Steel’s headquarters would remain in Pittsburgh. 

The White House had recently extended the deadline for Nippon to cease its pursuit of U.S. Steel until June, as both companies engage in a lawsuit challenging the decision to block the acquisition.

President Joe Biden’s administration has maintained that keeping U.S. Steel under American ownership is critical for national security. 

U.S. Steel CEO David Burritt has urged incoming President Donald Trump to reverse Biden’s decision, though Trump has previously expressed opposition to Nippon’s bid.

 

Source: Investing.com