CEO Lourenco Goncalves Eyes US Steel Takeover

In a recent interview with Semafor, Lourenco Goncalves, the CEO of Cleveland-Cliffs Inc., expressed confidence in his company's ability to finance a $7 billion bid for United States Steel Corporation. Goncalves mentioned that if the deal with Nippon Steel Corporation falls through, Cleveland-Cliffs is prepared with an all-cash proposal ready to go.

Strategic Financial Backing

While Goncalves did not disclose the identities of his financial advisors, sources revealed that he has been in discussions with top firms including Moelis & Company, JPMorgan Chase & Co., UBS Group AG, Truist Financial Corporation, and Wells Fargo & Company. This strategic move underscores Cleveland-Cliffs' serious intent in pursuing the acquisition of US Steel.

Challenges Ahead

The proposed bid by Cleveland-Cliffs is notably lower than the $14 billion offer from Nippon Steel Corporation, which was recently blocked by US President Joe Biden due to national security concerns. A spokesperson for US Steel criticized Goncalves' remarks, labeling them as an attempt to divert attention from alleged monopolistic practices.