Cleveland-Cliffs is reportedly partnering with Nucor to prepare a potential bid for U.S. Steel, following the White House's decision to block Japan's Nippon Steel from acquiring the company. Sources indicate that Cleveland-Cliffs would purchase all of U.S. Steel for cash and subsequently sell the Big River Steel subsidiary to Nucor.
The proposed offer is in the high $30s a share, contrasting with Nippon Steel's earlier $55 per share bid, valued at over $14 billion. U.S. Steel's shares jumped more than 6% to close at $36.34 on the news, while Nucor shares rose approximately 4%.
This potential 'all-American solution' emerges after President Biden cited national security concerns in blocking the Nippon Steel deal, emphasizing the importance of a strong domestic steel industry. Nucor had previously expressed interest in acquiring some of U.S. Steel's assets but did not proceed due to valuation concerns.
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