A United Steelworkers sign is seen outside the Great Lakes Works United States Steel plant in River Rouge, Michigan U.S., September 16, 2024.
Rebecca Cook | Reuters
Cleveland Cliffs is partnering with rival Nucor in a potential bid for U.S. Steel, whose takeover by Japan’s Nippon Steel was blocked by the White House earlier this month, sources tell CNBC’s David Faber.
Cleveland-Cliffs would purchase all of U.S. Steel for all cash and then sell off the Big River Steel subsidiary to Nucor, the sources said. U.S. Steel’s headquarters would remain in Pittsburgh under the deal.
The offer would be in the high $30s a share. Nippon had planned to buy U.S. Steel for $55 per share in a deal valued at more than $14 billion.
U.S. Steel shares jumped more than 8% in midmorning trading on Monday.
The White House over the weekend extended the deadline for Nippon to permanently end its pursuit of U.S. Steel until June, as the companies pursue a lawsuit in federal court against President Joe Biden’s decision to block the deal.
U.S. Steel and Nippon have also filed a separate lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall, alleging they colluded to block the deal.
Biden’s decision to block the sale came after a review by the Committee on Foreign Investment in the United States, but the president had made clear for months that he believes U.S. Steel should remain an American-owned company.
Biden cited national security concerns in his Jan. 3 decision, saying a strong domestic steel industry is critical for U.S. supply chains. U.S. Steel and Nippon have argued that the deal is in the best interest of workers and national security by strengthening the steel industry in the face of threats from China.
U.S. Steel CEO David Burritt has called President-elect Donald Trump to reverse Biden’s decision to block the sale when he takes office later this month. Trump has also opposed Nippon’s acquisition of U.S. Steel.
