Cleveland-Cliffs is set to acquire U.S. Steel in an all-cash deal, subsequently selling Big River Steel to Nucor. The deal faces a lawsuit from U.S. Steel and Nippon, who allege collusion to block their previous acquisition.
Cleveland-Cliffs is reportedly set to acquire U.S. Steel in an all-cash deal valued in the high $30s per share. Sources indicate that Cleveland-Cliffs will subsequently sell off U.S. Steel 's Big River Steel subsidiary to Nucor . Under the proposed agreement, U.S. Steel 's headquarters will remain in Pittsburgh. This development comes after President Biden blocked Nippon's planned acquisition of U.S. Steel for $55 per share, citing national security concerns.
Biden argued that a robust domestic steel industry is crucial for U.S. supply chains. U.S. Steel and Nippon argued that their deal would benefit both workers and national security by bolstering the U.S. steel industry against competition from China. Meanwhile, a lawsuit has been filed by U.S. Steel and Nippon against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall, alleging collusion to obstruct the Nippon deal. Following the news, shares of both Cleveland-Cliffs and Nucor experienced a rise of approximately 3% each on Monday
CLEVELAND-CLIFFS U.S. STEEL ACQUISITION NUCOR STEELINDUSTRY
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