Official announcements from U.S. Steel or regulatory filings

Cleveland-Cliffs and Nucor Plan Joint Bid for U.S. Steel at High $30s Per Share, Amid Nippon's Blocked Offer

Jan 13, 2025, 06:34 PM

Cleveland-Cliffs Inc. and Nucor Corp. are reportedly considering a joint bid for United States Steel Corp., according to sources cited by CNBC. The proposed deal involves Cleveland-Cliffs purchasing U.S. Steel entirely in cash, with plans to subsequently sell the Big River Steel subsidiary to Nucor. U.S. Steel's headquarters would remain in Pittsburgh under this arrangement. The potential offer is expected to be in the high $30s per share, significantly lower than the $55 per share Nippon Steel had offered before its bid was blocked by the Biden administration earlier this month on national security grounds. U.S. Steel shares rose to around $37 following the report, reflecting the market's response to the potential bid. Cleveland-Cliffs CEO Lourenco Goncalves has expressed readiness to make an offer if the merger between U.S. Steel and Nippon Steel fails permanently, emphasizing an 'All-American solution' to keep U.S. Steel American-owned. He has also criticized Japan and the Biden administration's handling of the Nippon deal. The White House has extended the deadline for Nippon to abandon its pursuit of U.S. Steel until June, amid ongoing legal challenges from U.S. Steel and Nippon against the administration's decision, with Nippon also filing a lawsuit against Cleveland-Cliffs and its CEO, alleging collusion to block the Nippon deal.