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Cleveland Cliffs is cooperating with the rival nucor in a potential bid United States steelA takeover by Japan’s Nippon Steel was blocked by the White House earlier this month, sources told CNBC. David Faber.
Cleveland-Cliffs would buy all of U.S. Steel for all the cash and then sell its Big River Steel subsidiary to Nucor, the sources said. US Steel’s headquarters would remain in Pittsburgh under the deal.
The offer would be a high fee of $30. Nippon planned to buy US Steel for $55 per share in a deal valued at more than $14 billion.
US Steel shares rose more than 8% to $37.15 a share on Monday.
The White House over the weekend extended the deadline for Nippon to finally end its search United States steel until June, as the companies continue their lawsuit against President Joe Biden in federal court decision to block the deal.
US Steel and Nippon have also filed a lawsuit against Cleveland-Cliffs, CEO Lourenco Goncalves and United Steelworkers President David McCall, alleging they conspired to block the deal. Cleveland-Cliffs and Nucor shares were up about 3% on Monday.
Biden’s decision to block the sale came after a review by the Committee on Foreign Investment in the United States, but the president has made clear for months that he believes US Steel should remain an American company.
Biden cited national security concerns in his Jan. 3 decision, saying a strong domestic steel industry is critical to U.S. supply chains. US 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.
US Steel CEO David Burritt has called the president-elect Donald Trump to reverse Biden’s decision to block the sale when he takes office at the end of this month. Trump has also objected to Nippon’s acquisition of US Steel.
US Steel closed Friday at $34.24 per share.
