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A United Steelworkers sign is seen outside the Great Lakes Works United States Steel plant in River Rouge, Michigan U.S., September 16, 2024.
Rebecca Cook | Reuters
Cleveland Cliffs is partnering with rival Nucor in a potential bid for U.S. Steel, whose takeover by Japan’s Nippon Steel was just blocked by the White House earlier this month, sources tell CNBC’s David Faber.
Cleveland-Cliffs would purchase all of U.S. Steel for all cash and then sell off the Big River Steel subsidiary to Nucor, the sources said. The offer would be in the high $30s a share.
U.S. Steel’s headquarters would remain in Pittsburgh.
The White House over the weekend extended the deadline for Japan’s Nippon Steel to permanently end its pursuit of U.S. Steel until June as both companies filed lawsuits challenging the administration’s block of the merger on security grounds.
U.S. Steel shares closed at $34.24 a share on Friday.
President Joe Biden blocked Nippon’s more than $14 billion bid to acquire U.S. Steel, citing national security concerns after a monthslong review by the Committee on Foreign Investment in the United States.
