Cleveland-Cliffs and Nucor Plan Joint Bid For U.S. Steel

Cleveland-Cliffs and Nucor are preparing a joint bid to acquire US Steel, weeks after US President Joe Biden blocked a $15.1 billion acquisition attempt by Nippon Steel.

Cleveland-Cliffs and Nucor are reportedly considering a proposal in which Cleveland-Cliffs would acquire most of US Steel while Nucor would take over its mini-mill assets. I Photo: Cleveland-Cliffs

The deal's progress was reported by James Fontanella-Khan, Maria Heeter, Oliver Barnes, and Amelia Pollard for the Financial Times. At a press event, Cleveland-Cliffs CEO Lourenco Goncalves confirmed his interest in purchasing US Steel, Bloomberg News reported.

According to a source who requested anonymity due to the private nature of discussions, Cleveland-Cliffs and Nucor are considering a proposal in which Cleveland-Cliffs would acquire most of US Steel while Nucor would take over its mini-mill assets.

No final decision has been made, and the companies may still decide not to proceed, according to Reuters.

Earlier this month, President Biden blocked Nippon Steel Corp.’s $14.1 billion takeover of US Steel on national security grounds. In response, Nippon Steel filed lawsuits in a bid to preserve the merger. Cleveland-Cliffs was one of several bidders for US Steel in 2023 but was ultimately outbid by Nippon Steel.

CEO Lourenco Goncalves stated during Monday’s press conference that once Nippon Steel’s deal is officially abandoned, Cleveland-Cliffs intends to move forward with its plans.

If successful, the company would adopt the US Steel name and relocate its headquarters to Pittsburgh.