Cleveland-Cliffs is partnering with Nucor to weigh a potential joint bid for United States Steel, according to a person familiar with the matter. Cliffs¡¯ top boss later confirmed his interest in the American steelmaker at a press event.
The companies are considering an offer that would involve Cleveland-Cliffs acquiring most of U.S. Steel and Nucor taking its so-called mini-mill assets, said the person, who asked to not be identified because the details aren¡¯t public. A final decision hasn¡¯t been made and the companies could still opt against pursuing a deal, the person said.
U.S. Steel didn¡¯t respond to requests for comment. Nucor declined to comment.
U.S. President Joe Biden this month blocked Nippon Steel¡¯s $14.1 billion takeover of U.S. Steel on national security grounds. The companies subsequently filed a pair of lawsuits in a last-ditch effort to preserve the merger.
Cliffs was among several steelmakers that participated in the auction for U.S. Steel in 2023, but it was outbid by Japan¡¯s Nippon Steel.
Talk of a fresh U.S. Steel takeover involving Cliffs was part of a wide-ranging news conference by Chief Executive Officer Lourenco Goncalves on Monday. The CEO said once Nippon Steel¡¯s deal is abandoned ¡°we¡¯re going to work.¡±
Cliffs¡¯ plan would include adopting the U.S. Steel name and moving its headquarters to Pittsburgh, he said.
¡°I want to buy. I have a plan,¡± Goncalves said at a gathering in Pennsylvania. ¡°I have an all-American solution in place.¡±
The CEO said in a later interview that he¡¯d fund any U.S. Steel deal with debt, while declining to give further details.
A potential joint bid for U.S. Steel involving Nucor was first reported by CNBC, which said the companies were considering an offer in the high $30 per share range.
Shares of U.S. Steel rose more than 10% after the CNBC report, to $37.75 ¡ª still well below Nippon Steel¡¯s $55-a-share offer. Cliffs shares climbed as much as 6% while Nucor shares were up as much as 4.6%.
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