Cleveland-Cliffs, Nucor Pursue US Steel Acquisition

Cleveland-Cliffs and Nucor are preparing a joint bid to acquire US Steel following the Biden administration's recent blockage of a $14.9 billion takeover by Japan's Nippon Steel. The proposed offer, which Cleveland-Cliffs plans to present soon, would involve purchasing US Steel in cash at a price in the high $30s per share, significantly lower than Nippon Steel's prior offer of $55 per share. After acquiring US Steel, Cleveland-Cliffs would sell its Big River Steel subsidiary to Nucor. Both Nippon Steel and US Steel are challenging the Biden administration's decision, alleging unlawful political interference. They have also filed a lawsuit against Cleveland-Cliffs and others, accusing them of conspiring to undermine the Nippon deal. The situation is unfolding amid a complex political backdrop as the 2024 presidential election approaches, with implications for domestic steel markets.