A new takeover bid for US Steel emerged on Monday, potentially sparking more turmoil over the company’s future after President Biden blocked its acquisition by a Japanese company.
Lourenco Goncalves, CEO of Cleveland-Cliffs, announced his company would seek to take over US Steel and sell off its subsidiary Big River Steel to Nucor. However, Goncalves did not confirm any partnership with Nucor on the bid.
US Steel shares rose 10% on Monday after CNBC reported the potential offer, but are still down 23% for the year. The company sued the Biden administration last week, accusing them of blocking the deal under false pretenses and filed a separate lawsuit against Cleveland-Cliffs and US Steelworkers union leader David McCall.
The new bid from Cleveland-Cliffs raises concerns about how receptive US Steel would be to the offer. If rejected, one option could be for Cleveland-Cliffs to take an offer to shareholders. US Steel has struggled in recent years due to a failure to adopt more energy-efficient and cost-effective alternatives to traditional mills.
The company’s future is uncertain after President Biden blocked its acquisition by Nippon Steel, citing national security concerns. A new bid from Cleveland-Cliffs may face antitrust scrutiny from federal regulators, who are expected to take a less aggressive approach than the Biden administration.
Source: https://www.nytimes.com/2025/01/13/business/economy/us-steel-cleveland-cliffs-nippon.html