Cleveland-Cliffs Pursues U.S. Steel Amid Uncertainty

Cleveland-Cliffs CEO Lourenco Goncalves expressed renewed interest in acquiring U.S. Steel following President Biden's recent decision to block Nippon Steel's $14.9 billion takeover due to national security concerns. Goncalves stated that he sees the acquisition as a matter of 'when,' not 'if,' and emphasized an 'All-American solution' for U.S. Steel's future. Reports suggest that Cleveland-Cliffs may partner with rival Nucor in a joint bid, potentially offering a per-share price in the 'high-30s,' slightly above U.S. Steel's recent closing price. However, Goncalves noted that any formal offer hinges on U.S. Steel abandoning its current deal with Nippon. The situation is complicated further by ongoing lawsuits from U.S. Steel and Nippon against the Biden administration, challenging the decision to block their merger. Goncalves also criticized Nippon Steel and Japan's practices while assuring the retention of U.S. Steel's headquarters in Pittsburgh if the acquisition proceeds.