Cleveland-Cliffs teams up with Nucor in potential US Steel bid - CNBC

Cleveland-Cliffs (NYSE: CLF) is reportedly collaborating with its rival Nucor (NYSE: NUE) on a potential bid to acquire US Steel (NYSE: X), as reported by CNBC’s David Faber on Monday.This development follows the Biden Administration’s decision to block Japan’s Nippon Steel from taking over US Steel.According to CNBC, Cleveland-Cliffs plans to purchase all of US Steel for cash and sell its Big River Steel subsidiary to Nucor. The offer is expected to be in the high $30s per share, while Nippon Steel had intended to acquire US Steel for $55 per share in a deal valued at over $14 billion.Shares of US Steel jumped 8.4% to $37.11 at 11:25 a.m. in New York, following the report.Cleveland-Cliffs is North America’s largest producer of flat-rolled steel. It operates an extensive network of mines and shipping routes on the Great Lakes, which transport iron ore and pellets between mines, smelters, and steel plants. Nucor is the largest steel producer in the United States and the leading scrap recycler in North America, with facilities in the US, Canada, and Mexico.Under the proposed deal, US Steel’s headquarters would remain in Pittsburgh.Delay on blocking Nippon Steel dealOn Saturday, Nippon Steel and US Steel announced that the Biden administration had delayed the order requiring Nippon Steel to abandon its bid until June.The acquisition, first announced in December 2023, sparked political debate and raised concerns among steelworkers about potential job losses.President Joe Biden blocked the acquisition on national security grounds on January 3. Treasury Secretary Janet Yellen stated this week that the proposed deal underwent a “thorough analysis” by the interagency review body known as the Committee on Foreign Investment in the United States (CFIUS).Despite Nippon Steel, US and Japan say ties stronger than everThe delay allows the courts to review a legal challenge brought by the steelmakers against Biden’s order. Initially, the parties had 30 days to unwind their transaction.“We are pleased that CFIUS has granted an extension until June 18, 2025, for the requirement in President Biden’s Executive Order that the parties permanently abandon the transaction,” the companies said in a statement. “We look forward to completing the transaction, which secures the best future for the American steel industry and all of our stakeholders.”In their lawsuit, US Steel and Nippon Steel alleged that the CFIUS review was biased due to Biden’s longstanding opposition to the deal, claiming it denied them the right to a fair review. They requested a federal appeals court to overturn Biden’s decision, granting them another opportunity to finalize the merger.US Steel CEO David Burritt has contacted President-elect Donald Trump to urge him to reverse Biden’s decision blocking the sale once he takes office later this month. Trump has also expressed his opposition to Nippon’s acquisition of US Steel.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com