Cleveland-Cliffs CEO Lourenco Goncalves remains open to acquiring US Steel, promising to keep all acquired assets operational. Goncalves stated that Cliffs, based in Ohio, still aims to purchase Pennsylvania-based US Steel and invest in its assets.
His comments follow President Joe Biden’s recent block of Nippon Steel’s $15 billion agreement to buy US Steel, citing national security concerns. Nippon had committed to investing $1.3 billion in US Steel’s mills and maintaining production levels for 10 years without government approval.
Cliffs had previously offered $54 per share for US Steel, with half paid in cash and half in company stock, before US Steel accepted Nippon’s $55 per share all-cash offer. Goncalves emphasized that Cliffs cannot bid for US Steel until the merger agreement with Nippon is canceled and dismissed antitrust concerns over Cliffs owning all US iron ore mines and blast furnace capacity.
A merger between US Steel and Cliffs would result in a combined capacity of 32.1 million short tons per year of flat-rolled raw steel, along with plate making and seamless tube production. Goncalves did not specify how Cliffs would finance the purchase, noting the company’s liquidity of $3.8 billion as of September 30, while US Steel had $4.05 billion in liquidity during the same period.
Nippon is pursuing legal action against the US government and Cliffs over the blocked acquisition.