Major Industry Shakeup as Cleveland-Cliffs and Nucor Plan Joint Bid for US Steel

In a bold move that could reshape the American steel industry, Cleveland-Cliffs Inc. and Nucor Corporation are reportedly preparing a $7 billion bid to acquire US Steel. This offer, valuing US Steel shares at approximately $38 each, significantly surpasses their recent closing price of $34.24.

Strategic Funding and Acquisition Plans

Under the proposed deal, Cleveland-Cliffs would finance the purchase in cash, while Nucor aims to take over US Steel's Big River Steel subsidiary. This strategic partnership highlights the companies' commitment to expanding their footprint in the steel sector.

Background: White House Blocks Nippon Steel's Bid

This development follows the White House's decision to block Japan's Nippon Steel from acquiring US Steel, citing national security concerns. Nippon Steel has until June to withdraw its bid, amidst ongoing legal challenges that have stirred the industry.