The company’s renewed interest comes after the Biden administration blocked Nippon Steel from acquiring the onetime American powerhouse.According to The New York Times, the Biden administration’s decision to block Nippon Steel from acquiring U.S. Steel has sparked renewed interest in the company’s future. On Monday, a potential new takeover bid for U.S. Steel emerged, causing more uncertainty about the once-dominant company’s fate.
Lourenco Goncalves, the CEO of Cleveland-Cliffs, an American competitor, stated that his company has “an All-American solution to save the United States Steel Corporation.” He emphasized that acquiring U.S. Steel is a matter of “when,” not “if.” However, he did not provide any details about the bidding plans.
This renewed interest from Cleveland-Cliffs comes less than two weeks after President Biden blocked a $14 billion takeover of U.S. Steel by Nippon Steel, citing national security concerns. Cleveland-Cliffs had previously attempted to buy U.S. Steel in 2023, but their offer was rejected in favor of Nippon’s higher bid.
According to CNBC, Cleveland-Cliffs is planning to take over U.S. Steel and sell off its subsidiary, Big River Steel, to Nucor, another American producer. However, Mr. Goncalves did not confirm any partnership with Nucor during a news conference later in the day.
Neither U.S. Steel nor Nucor immediately responded to requests for comment. However, investors seemed optimistic about the potential bid, causing U.S. Steel’s shares to rise by 10 percent when CNBC reported the news. By the end of the day, U.S. Steel’s shares had increased by 6 percent, although they are still down 23 percent over the past year.
Meanwhile, the fate of Nippon’s proposed takeover remains uncertain. U.S. Steel and Nippon have filed a lawsuit against the United States government, accusing President Biden and other officials of corrupting the review process for political gain and blocking the deal under false pretenses.
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